Question: Reformulation of an Equity Statement and Accounting for the Exercise of Stock Options: Starbucks Corporation (Hard)
The statement of shareholders; equity below for Starbucks Corporation, the retail coffee vendor, is for fiscal year 2007.
![2347_AP.png](https://secure.tutorsglobe.com/CMSImages/2347_AP.png)
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.
c. The following information is provided in the equity footnote in the firms 10-K for 2007:
![614_AP 1.png](https://secure.tutorsglobe.com/CMSImages/614_AP 1.png)
At balance sheet date in 2007, Starbucks; shares traded at $28.57 each. Provide an estimate of the option overhang at that date.