Investments: Equity Valuation Mini-Project Prof. Shaojun Zhang The coffee giants fight: Starbucks Corporation vs. Tim Hortons Inc. Consider the information below for coffee giants Staurbucks and Tim Hortons. The data corresponds to closing prices on 10/28/2011. Assume that r J 0.01, ErM] 0.08. The tables contain the following information: Range: minimum-maximum transanction prices on that date. 52 week: minimum-maximum transanction prices during last year Vol/Avg.: Trading volume on that date and average trading volume Mkt Cap: Mearket capitalization P/E: Price-Earnings ratio Po/Eo Div/yield: Dividend per quarter and yield per year Do Div x 4, Yield per year Do/ EPS: Earnings per share per year (EO) Shares: Number of outstanding shares Inst. own: Fraction of shares owned by institutions Questions Use the DDM you know to answer the following questions 1. What are the required rates of return on equity