Briefly describe which of these three methods you believe to be the most suitable for valuing Starbucks.

1) Q2A_FCFF: a 1-stage FCFF model, which assumes that Starbucks is already in a steady- state growth,

2) Q2B_FCFF: a 2-stage FCFF model, which assumes that Starbucks will be in a high growth phase for 3 years followed by steady-state growth,

3) Q2C_FCFF: a 3-stage FCFF model, where we assume that Starbucks goes through a period of high growth (years 1 through 3), followed by a transition period (years 4 through 10), before finally entering a period of steady state growth (year 11 until the end of time). You do not need to do anything about the transition period. The excel spreadsheet is already built-in with two different models for this period. The first assumes that the growth rate in NOPAT declines linearly in the transition stage. The second model assumes that the growth rate declines exponentially. There is a figure included that displays how the growth rate in NOPAT changes over time.