The statement of shareholders' equity below for Starbucks Corporation, the retail coffee vendor, is for fiscal year
Question:
The statement of shareholders' equity below for Starbucks Corporation, the retail coffee vendor, is for fiscal year 2007.
(a) Reformulate the statement to distinguish comprehensive income from transactions with shareholders
(b) Calculate the after-tax loss to shareholders from the exercise of stock options during the year.
At balance sheet date in 2007, Starbucks' shares traded at $28.57 each. Provide an estimate of the option overhang at thatdate.
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Accumulated Other Additional Other Additional Common Stock Paid-In Paid-ad Comprehensive Shares Amount itai Capital Earnings (S in thousands) Amount Capita Capital Earnings Income/Lass) Tota Balance, Dctober 1, 2006 756,02071 $756$39 393 539393 S2,151,08437273 2,228,506 Net earniags 572633 Unrealized holding loss. Transiation adjustment, Comprehensive income 672.638 (20,380) 37,727 net (20,380) net of tax 37,727 Stok-based compensation expense C6,373 06,373 Exercise of stock options, inckadng tax benefit of $95,276 12,744,226 3 225,233 225,246 Sale of common stock incuding tax provision of $139,908,407246,826 46,828 ,012,821) 539,393 $2,189366 54,620 $2,284,117 Repurchase of common stock (32,969419) (33) 378,432) 634,356) Balance September 30, 2007 738.285,285 $738 0 Shares Subject to Optsons Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Life (Years) 69,419,871 2,298,465 (12,744.226) (3,458,007 65,516,103 40,438,082 16.83 36,04 10.23 30.92 20.97 4.65 Outstanding, Cctober , 2006 Granted xercsed Cancelled/forfeited 6.2 5.0 Outstanding. September 30, 2007 Exercisable, September 30, 2007 Vested and expected to vest September 30, 2007 63,681,867 20.60 6.2
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a The closing balance excludes 1064 million for Stockbased compensation expense which is a liability ...View the full answer
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