1.

Starbucks had a FCFE/share at the end of last year of $2.72. For this year, growth is expected to be -9.89%, for years 2 and 3 growth is expected to be 9.95, and then 1.13 thereafter. If the correct cost of equity is 4.63, what is the current price?

2.

Starbucks' FCFF (free cash flow to the firm) is $2.54/share. Using the Gordon Growth model with FCFF, find the value of the firm given constant growth of 1.98%, a weight in equity of 89.0%, cost of equity of 7.91%, after-tax cost of debt of 5.10%.