Div. 2016 = 0.85 $/share
Div. 2015 = 0.68 $/share
Div. 2014 = 0.55 $/share
cash flow data
Since you already have the WACC, which implies you have the YTM on the bonds and the CAPM return, for Starbucks 2016; calculate the value of Starbucks stock using 2016 data. Use both the dividend discount model and the Free cash flow model. You will need The WACC (which you have) 9.70% -The return as calculated by CAPM (you also have it) 10.07% The dividends per share for the years 2014, 2015, and 2016 (in the statement of equity) The FCF for the years 2014, 2015, and 2016 Free Cash Flow = cash form operations-CAPEX + interest expense Oct 2 2016 (53 Wks) Sep 27, 2015 (52 Wks) Sep 28, 2014 (52 Wks) As of and for the Fiscal Year Ended Results of Operations Net revenues: 16,844.1 15,197.3 12,977.9 $ Company-operated stores Licensed stores CPG, foodservice and other 2,154.2 317.6 $ 21,315.9 1,861.9 2,103.5 1,588.6 881.3 19,162.7 $ 16,447.8 $ $ 4,171.9 3,601.0 $ 3,081.1 S Total net revenues Operating income/(loss) Net earnings including noncontrolling interests2) 2,818.9 2,759.3 2,067.7 Net earnings/(loss) attributable to noncontrolling interests 0.4 2,068.1 1.35 0.550 607.8 1.2 Net earnings attributable to Starbucks Cash dividends declared per share Capital expenditures (additions to property, plant and 2,817.7 2,757.4 1.82 0.680 749.1 EPS- diluted 1.90 0.850 equipment) 1,440.3 ,303.7 1,60.9 Interest expense (81.3) (70.5) Since you already have the WACC, which implies you have the YTM on the bonds and the CAPM return, for Starbucks 2016; calculate the value of Starbucks stock using 2016 data. Use both the dividend discount model and the Free cash flow model. You will need The WACC (which you have) 9.70% -The return as calculated by CAPM (you also have it) 10.07% The dividends per share for the years 2014, 2015, and 2016 (in the statement of equity) The FCF for the years 2014, 2015, and 2016 Free Cash Flow = cash form operations-CAPEX + interest expense Oct 2 2016 (53 Wks) Sep 27, 2015 (52 Wks) Sep 28, 2014 (52 Wks) As of and for the Fiscal Year Ended Results of Operations Net revenues: 16,844.1 15,197.3 12,977.9 $ Company-operated stores Licensed stores CPG, foodservice and other 2,154.2 317.6 $ 21,315.9 1,861.9 2,103.5 1,588.6 881.3 19,162.7 $ 16,447.8 $ $ 4,171.9 3,601.0 $ 3,081.1 S Total net revenues Operating income/(loss) Net earnings including noncontrolling interests2) 2,818.9 2,759.3 2,067.7 Net earnings/(loss) attributable to noncontrolling interests 0.4 2,068.1 1.35 0.550 607.8 1.2 Net earnings attributable to Starbucks Cash dividends declared per share Capital expenditures (additions to property, plant and 2,817.7 2,757.4 1.82 0.680 749.1 EPS- diluted 1.90 0.850 equipment) 1,440.3 ,303.7 1,60.9 Interest expense (81.3) (70.5)
