Is it possible if you can send me a few comments around what the WACC tells about Starbucks. I included an Excel file of the WACC. Please double check my work and make sure that the formula of the WACC are in the cell.

I need a Word doc that gives an analysis of what Starbucks' WACC tells us about the company. What I need for this assignment isa short analysis on Starbuck'sWACC affects the company. Can you help?

Income Statement (in millions) Net revenues: Company-operated stores Licensed stores CPG, foodservice and other Total net revenues Cost of sales including occupancy costs Store operating epenses Other operating expenses Depreciation and amortization expense General and administrative expenses Litigation charge (credit) Total operating expenses Income from equity investees Operating income/(loss) Interest income and other, net Interest expense Earnings/(loss) before income taxes Income tax expense/(benefit) Net earnings including noncontrolling intereests Net earnings/(loss) attributable to noncontrolling interests Net earnings attributable to Starbucks $ 12,977.9 $ $ 1,588.6 $ $ 1,881.3 $ $ 16,447.8 $ $ 6,858.8 $ $ 4,638.2 $ $ 457.4 $ $ 709.6 $ $ 991.3 $ $ (20.2) $ $ 13,635.0 $ $ 268.3 $ $ 3,081.1 $ $ 142.7 $ $ (64.1) $ $ 3,159.7 $ $ 1,092.0 $ $ 2,067.7 $ $ (0.4) $ $ 2,068.1 $ Balance Sheet (in millions) Current assets: Cash and cash equivalents Short-term investments Accounts receivable, net Inventories Prepaid expenses and other current assets Deferred income taxes, net Total current assets Long-term investments Equity and cost investments Property, plant and equitment, net Deferred income taxes, net Other assets Other intangible assets Goodwill $ $ $ $ $ $ $ $ $ $ $ $ $ $ Total Assets $ Current liabilities: Accounts payable Accrued litigation charge Accrued liabilities Insurance reserves Deferred revenue Total current liabilities Long-term debt Other long-term liabilities Total liabilities Shareholders' equity: Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive income Total shareholders' equity Noncontrolling interest Total equity Total Liabilities and Equity 2013 2014 2014 1,708.4 135.4 631.0 1,090.9 285.6 317.4 4,168.7 318.4 514.9 3,519.0 903.3 198.9 273.5 856.2 2012 2014 Common Size 11,793.2 1,360.5 1,713.1 14,866.8 6,382.3 4,286.1 431.8 621.4 937.9 2,784.1 15,443.6 251.4 (325.4) 123.6 (28.1) (229.9) (238.7) 8.8 0.5 8.3 $ 10,534.5 $ 1,210.3 $ 1,532.0 $ 13,276.8 $ 5,813.3 $ 3,918.1 $ 407.2 $ 550.3 $ 801.2 $ $ 11,490.1 $ 210.7 $ 1,997.4 $ 94.4 $ (32.7) $ 2,059.1 $ 674.4 $ 1,384.7 $ 0.9 $ 1,383.8 0.78904 0.09658 0.11438 1.00000 0.41700 0.28200 0.02781 0.04314 0.06027 (0.00123) 0.82899 0.01631 0.18733 0.00868 (0.00390) 0.19210 0.06639 0.12571 (0.00002) 0.12574 0.79326 0.09151 0.11523 1.00000 0.42930 0.28830 0.02904 0.04180 0.06309 0.18727 1.03880 0.01691 (0.02189) 0.00831 (0.00189) (0.01546) (0.01606) 0.00059 0.00003 0.00056 0.79345 0.09116 0.11539 1.00000 0.43785 0.29511 0.03067 0.04145 0.06035 0.86543 0.01587 0.15044 0.00711 (0.00246) 0.15509 0.05080 0.10429 0.00007 0.10423 2012 2014 Common Size 2013 Common Size 2012 Common Size $ $ $ $ $ $ $ $ $ $ $ $ $ $ 1,188.6 848.4 485.9 1,241.5 196.5 238.7 4,199.6 116.0 459.9 2,658.9 97.3 144.7 143.7 399.1 0.15888 0.01259 0.05868 0.10145 0.02656 0.02952 0.38768 0.02961 0.04788 0.32726 0.08401 0.01850 0.02543 0.07963 0.22365 0.05714 0.04875 0.09649 0.02498 0.02408 0.47508 0.00506 0.04311 0.27790 0.08397 0.01609 0.02386 0.07493 0.14461 0.10322 0.05912 0.15105 0.02391 0.02904 0.51095 0.01411 0.05595 0.32350 0.01184 0.01761 0.01748 0.04856 11,516.7 $ 8,219.2 1.00000 1.00000 1.00000 0.04963 0.14084 0.01824 0.07389 0.28259 0.19049 0.03647 0.50956 0.00007 0.00366 0.48420 0.00235 0.49029 0.00016 0.49044 1.00000 0.04269 0.24174 0.11021 0.01550 0.05676 0.46691 0.11283 0.03106 0.61080 0.00007 0.02449 0.35864 0.00582 0.38902 0.00018 0.38920 1.00000 0.04844 0.13795 0.02040 0.06207 0.26886 0.06687 0.04201 0.37774 0.00009 0.00479 0.61395 0.00276 0.62159 0.00067 0.62591 1.00000 2013 $ $ $ $ $ $ $ $ $ $ $ $ $ $ 10,752.9 $ 2,575.7 658.1 561.4 1,111.2 287.7 277.3 5,471.4 58.3 496.5 3,200.5 967.0 185.3 274.8 862.9 $ $ $ $ $ $ $ $ $ 533.7 1,514.4 196.1 794.5 3,038.7 2,048.3 392.2 5,479.2 $ $ $ $ $ $ $ $ $ 491.7 2,784.1 1,269.3 178.5 653.7 5,377.3 1,299.4 357.7 7,034.4 $ $ $ $ $ $ $ $ $ 398.1 1,133.8 167.7 510.2 2,209.8 549.6 345.3 3,104.7 $ $ $ $ $ $ $ $ 0.7 39.4 5,206.6 25.3 5,272.0 1.7 5,273.7 10,752.9 $ $ $ $ $ $ $ $ 0.8 282.1 4,130.3 67.0 4,480.2 2.1 4,482.3 11,516.7 $ $ $ $ $ $ $ $ 0.7 39.4 5,046.2 22.7 5,109.0 5.5 5,144.5 8,219.2 2013 Common Size 2012 Common Size Calculation of WACC for Starbucks Corporation Particulars Abbreviations 2014 Years 2013 2012 A. Calculation of Wd and We Long-term debt Total shareholders Equity Value of Firm D E V=D+E 2048.30 5272.00 7320.30 1299.40 549.60 4480.20 5109.00 5779.60 5658.60 Weight of Debt Weight of Equity (Wd) (We) 27.98% 72.02% 22.48% 77.52% B. Calculation of Effective Tax Rate Tax Expense Earnings before Tax Effective Tax Rate T 9.71% 90.29% EBT T 1,092.00 3,159.70 34.56% -238.70 674.40 -229.90 2,059.10 103.83% 32.75% C. Calculation of Cost of Debt post- Tax Interest Expense Long-term debt Cost of Debt (Pre-Tax) Cost of Debt (Post-Tax) Kd (1-T) I D Kd Kd (1-T) 64.10 2048.30 3.13% 2.05% 28.10 1299.40 2.16% -0.08% 32.70 549.60 5.95% 4.00% D. Calculation of Cost of Equity Average Market Price per share Earnings per Share (Basic) Cash dividends paid per share Earnings Retained Retention Rate (Earnings retained/EPS) Ke MPS or P0 EPS D0 EPS-DPS b 75.56 76.97 2.75 0.01 1.1 0.89 1.65 -0.88 60.00% -8800.00% 50.71 1.83 0.72 1.11 60.66% Net Earnings attributable to Starbucks Total Shareholder's Equity ROE= Net Earnings attributable to Starbucks/ Total Shareholder's Equity Growth Rate (g=Retention rate * ROE) ROE 2068.10 5272.00 39.23% 8.3 1383.80 4480.20 5109.00 0.19% 27.09% g= b* ROE 23.537% -16.303% 16.429% Using the the gordon growth model, we can find the cost of equity as follows: Ke= [D0(1+g)/MPS] + g Cost of Equity Ke WACC= Wd*Kd (1-T) + We*Ke 25.34% 18.819% -15.34% 18.08% -11.906% 16.714%