If you were to do an absolute valuation on SBUX and CMG

and assume they had the exact same expected future cash

flows and all other metrics were the same except for WACC,

which company would have a higher valuation and why?

SBUX would have a higher valuation because it has a lower WACC

CMG would have a higher valuation because it has a higher WACC

CMG would have a higher valuation because it has a lower WACC