Starbucks repurchased over $1.4 billion of its common stock in 2015. How did this repurchase affect...
Starbucks repurchased over $1.4 billion of its common stock in 2015. How did this repurchase affect Starbucks' ROE?
ROE usually decreases since the repurchase of shares reduces the denominator (avg. stockholders' equity).
ROE usually increases since the repurchase of shares reduces the denominator (avg. stockholders' equity).
ROE usually increases since the repurchase of shares increases the denominator (avg. stockholders' equity).
ROE usually decreases since the repurchase of shares increases the denominator (avg. stockholders' equity).
Homework Answers
The correct answer is:-
b) ROE usually increases since the repurchase of shares reduces the denominator (avg.stockholders' equity).
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Starbucks repurchased over $1.4 billion of its common stock in
2015. How did this repurchase affect...
Computing Return on Equity Starbucks reports net income for 2015 of $2,634.4 million. Its stockholders' equity...
Computing Return on Equity Starbucks reports net income for 2015 of $2,634.4 million. Its stockholders' equity is $5,605 million and $6,151 million for 2014 and 2015, respectively. a. Compute its return on equity for 2015. Round answer to one decimal place (ex: 0.2345 = 23.5%) Answer% b. Starbucks repurchased over $1.4 billion of its common stock in 2015. How did this repurchase affect Starbucks' ROE? ROE usually decreases since the repurchase of shares reduces the denominator (avg. stockholders' equity). ROE...
At what average cost has Caterpillar repurchased its stock as of year-end 2016? Please explain answer choice in detail...
At what average cost has Caterpillar repurchased its stock as
of year-end 2016?
Please explain answer choice in detail.
5. Assume the following is the stockholders' equity section of the 2016 Caterpillar, Inc., balance sheet. 2016 2015 2014 $1,859 $1,231 $1,059 Stockholders' Equity (5 millions) Common stock of $1.00 par value; Authorized shares: 900,000,000; Issued shares (2016, 2015, and 2014 814,894,624) at paid-in amount Treasury stock (2016144,027,405 shares; 2015- 129,020,726 shares; 2014—127,370,544 shares) at cost Profit employed in the business...
4. Glaser Company paid $36,000 to buy 3,000 shares of its $5 par value common stock...
4. Glaser Company paid $36,000 to buy 3,000 shares of its $5 par value common stock for the treasury. The stock was originally sold for $27,000. The entry to record the purchase includes a a. debit to Treasury Stock for $27,000. b. credit to Treasury Stock for $15,000. c. debit to Treasury Stock for $36,000. d. credit to Common Stock for $27,000. 5. The purchase of treasury stock a. increases total assets and decreases total stockholders' equity. b. decreases total...
Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common....
Donnie Hilfiger has two classes of stock authorized: $1 par
preferred and $0.01 par value common. As of the beginning of 2018,
330 shares of preferred stock and 4,300 shares of common stock have
been issued. The following transactions affect stockholders’ equity
during 2018:
March 1 Issues 1,400 shares of common stock for $45 per
share.
May 15 Purchase 430 shares of treasury stock for $38 per
share.
July 10 Reissues 230 shares of treasury stock purchased on May
15...
M8-25 The Monster Beverage common stock has a par value of $0.005. What adjustments will Monster...
M8-25
The Monster Beverage common stock has a par value of $0.005. What adjustments will Monster Beverage Corporation make to its balance sheet as a result of the stock split? V8-25. Reconciling Common Stock and Treasury Stock Balances Following is the stockholders' equity section from the Abercrombie & Fitch balance sheet. Stockholders' equity (s thousands, except par value amounts) January 30, 2016 January 31, 2015 Class A common stock - $0.01 per value: 150,000 shares authorized and 103,300 shares issued...
The following information pertains to JAE Corp. at January 1, Year 1 Common stock, $9 par,...
The following information pertains to JAE Corp. at January 1, Year 1 Common stock, $9 par, 11,000 shares authorized, 2,280 shares issued and outstanding Paid-in capital in excess of par, common stock Retained earnings $19,800 15,900 58,800 JAE Corp. completed the following transactions during Year 1: 1. Issued 800 shares of $9 par common stock for $30 per share. 2. Repurchased 180 shares of its own common stock for $27 per share. 3. Resold 50 shares of treasury stock for...
The following information pertains to JAE Corp. at January 1, 2018: Common stock, $8 par, 10,000 shares authori...
The following information pertains to JAE Corp. at January 1,
2018:
Common stock, $8 par, 10,000 shares authorized, 2,000 shares
issued and outstanding
$
16,000
Paid-in capital in excess of par, common stock
13,200
Retained earnings
60,800
JAE Corp. completed the following transactions during 2018:
Issued 850 shares of $8 par common stock for $27 per
share.
Repurchased 250 shares of its own common stock for $24 per
share.
Resold 50 shares of treasury stock for $25 per share.
Required:...
Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common....
Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common. As of the beginning of 2021, 440 shares of preferred stock and 5,400 shares of common stock have been issued. The following transactions affect stockholders' equity during 2021: March 1 Issue 2,500 shares of common stock for $56 per share. May 15 Purchase 540 shares of treasury stock for $49 per share. July 10 Resell 340 shares of treasury stock purchased on May 15...
The following information pertains to JAE Corp. at January 1, 2018: Common stock, $9 par, 15,000...
The following information pertains to JAE Corp. at January 1, 2018: Common stock, $9 par, 15,000 shares authorized, 3,000 shares issued and outstanding Paid-in capital in excess of par, common stock Retained earnings $27,000 15,800 51,100 JAE Corp. completed the following transactions during 2018: 1. Issued 900 shares of $9 par common stock for $30 per share. 2. Repurchased 160 shares of its own common stock for $27 per share. 3. Resold 50 shares of treasury stock for $28 per...
The following information pertains to JAE Corp. at January 1, 2018: Common stock, $10 par, 20,000 shares authorize...
The following information pertains to JAE Corp. at January 1, 2018: Common stock, $10 par, 20,000 shares authorized, 2,000 shares issued and outstanding Paid-in capital in excess of par, common stock Retained earnings $20,000 15,000 82,000 JAE Corp. completed the following transactions during 2018: 1. Issued 3,000 shares of $10 par common stock for $25 per share. 2. Repurchased 500 shares of its own common stock for $26 per share. 3. Resold 200 shares of treasury stock for $30 per...
At what average cost has Caterpillar repurchased its stock as
of year-end 2016?
Please explain answer choice in detail.
5. Assume the following is the stockholders' equity section of the 2016 Caterpillar, Inc., balance sheet. 2016 2015 2014 $1,859 $1,231 $1,059 Stockholders' Equity (5 millions) Common stock of $1.00 par value; Authorized shares: 900,000,000; Issued shares (2016, 2015, and 2014 814,894,624) at paid-in amount Treasury stock (2016144,027,405 shares; 2015- 129,020,726 shares; 2014—127,370,544 shares) at cost Profit employed in the business...
Donnie Hilfiger has two classes of stock authorized: $1 par
preferred and $0.01 par value common. As of the beginning of 2018,
330 shares of preferred stock and 4,300 shares of common stock have
been issued. The following transactions affect stockholders’ equity
during 2018:
March 1 Issues 1,400 shares of common stock for $45 per
share.
May 15 Purchase 430 shares of treasury stock for $38 per
share.
July 10 Reissues 230 shares of treasury stock purchased on May
15...
M8-25
The Monster Beverage common stock has a par value of $0.005. What adjustments will Monster Beverage Corporation make to its balance sheet as a result of the stock split? V8-25. Reconciling Common Stock and Treasury Stock Balances Following is the stockholders' equity section from the Abercrombie & Fitch balance sheet. Stockholders' equity (s thousands, except par value amounts) January 30, 2016 January 31, 2015 Class A common stock - $0.01 per value: 150,000 shares authorized and 103,300 shares issued...
The following information pertains to JAE Corp. at January 1, Year 1 Common stock, $9 par, 11,000 shares authorized, 2,280 shares issued and outstanding Paid-in capital in excess of par, common stock Retained earnings $19,800 15,900 58,800 JAE Corp. completed the following transactions during Year 1: 1. Issued 800 shares of $9 par common stock for $30 per share. 2. Repurchased 180 shares of its own common stock for $27 per share. 3. Resold 50 shares of treasury stock for...
The following information pertains to JAE Corp. at January 1,
2018:
Common stock, $8 par, 10,000 shares authorized, 2,000 shares
issued and outstanding
$
16,000
Paid-in capital in excess of par, common stock
13,200
Retained earnings
60,800
JAE Corp. completed the following transactions during 2018:
Issued 850 shares of $8 par common stock for $27 per
share.
Repurchased 250 shares of its own common stock for $24 per
share.
Resold 50 shares of treasury stock for $25 per share.
Required:...
Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common. As of the beginning of 2021, 440 shares of preferred stock and 5,400 shares of common stock have been issued. The following transactions affect stockholders' equity during 2021: March 1 Issue 2,500 shares of common stock for $56 per share. May 15 Purchase 540 shares of treasury stock for $49 per share. July 10 Resell 340 shares of treasury stock purchased on May 15...
The following information pertains to JAE Corp. at January 1, 2018: Common stock, $9 par, 15,000 shares authorized, 3,000 shares issued and outstanding Paid-in capital in excess of par, common stock Retained earnings $27,000 15,800 51,100 JAE Corp. completed the following transactions during 2018: 1. Issued 900 shares of $9 par common stock for $30 per share. 2. Repurchased 160 shares of its own common stock for $27 per share. 3. Resold 50 shares of treasury stock for $28 per...
The following information pertains to JAE Corp. at January 1, 2018: Common stock, $10 par, 20,000 shares authorized, 2,000 shares issued and outstanding Paid-in capital in excess of par, common stock Retained earnings $20,000 15,000 82,000 JAE Corp. completed the following transactions during 2018: 1. Issued 3,000 shares of $10 par common stock for $25 per share. 2. Repurchased 500 shares of its own common stock for $26 per share. 3. Resold 200 shares of treasury stock for $30 per...
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