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1.)Estimate cost of debt using at least two bonds as proxies FOR starbucks 2.)Estimate cost of preferred stock, if any 3.) Estimate cost of equity
1.)Estimate cost of debt using at least two bonds as proxies FOR starbucks
2.)Estimate cost of preferred stock, if any
3.) Estimate cost of equity based on
a) the risk premium approach,
b)dividend discount model
c) CAPM
5. Estimate cost of capital using market value and book value.
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