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Below is data for Starbucks (SBUX) Corporation. Use this data (or select pieces of the data) to determine: A) Starbucks After Tax Cost of Debt

Below is data for Starbucks (SBUX) Corporation. Use this data (or select pieces of the data) to determine: A) Starbucks After Tax Cost of Debt B) Starbucks Cost of Equity C)Starbucks WACC (weighted average cost of capital). Shares outstanding 1,146,400,000,000

Share price $106.71

Cost of new debt 3.30%

Optimal D/E ratio 2/3 ($2 of debt for every $3 equity, HINT: use this data to get Wd, and We)

Beta of firm 0.83

Market Risk Premium 10%

Risk Free Rate 3.9%

Tax rate 21%

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