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For Starbucks Inc: What are the operating risks of the company? What is the financial risk of the company (the debt to total capitalization ratio)?
For Starbucks Inc:
- What are the operating risks of the company?
- What is the financial risk of the company (the debt to total capitalization ratio)?
- Does the company have any preferred stock?
- What is the capital structure of the company: a short-term portion of long-term debt, long-term debt, preferred stock (if any), and market value of common stock issued and outstanding?
- What is the company's current actual beta (or equity beta)?
- What is the company's current marginal tax rate?
- What is the cost of debt before and after taxes?
- What is the cost of preferred stock (if any)?
- What is the cost of common stock equity? (Use the Capital Asset Pricing Model.)
- What is the weighted average cost of capital of the company?
- How has the company's stock been performing in the last 5 years?
- What is the annual cash dividend yield of the common stock?
- How would you assess the overall risk structure of the company in terms
- of its operating risks and financial risk (debt-to-capitalization ratio)?
- Would you invest in this company? Why or why not?
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