per chegg guidelines, please just answer question d

1. You have been assigned to estimate the cost of capital of Starbucks Inc. Information about Starbuck's common stock Current Stock Price $ 89.50 Dividend in time 0 Expected growth in dividends per year 2.00% Beta Starbucks is a large company with well diversified Investors $2.20 1.00 3.00% 2.00% of price to issue bonds 21% 80.00% 6.00% 0 Information about Starbuck's bonds 1 Current bond price expressed as $ 103.00 Coupon rate 2 Maturity date 2050 Underwriter fee 3 Starbucks' bonds are US corporate bonds 14 15 Additional Information: Starbucks has no preferred stock Tax rate 16 Starbucks weight on debt 20.00% Starbucks weight on common stock 17 Risk free rate 1.30% Market risk premium 18 Use the above information to answer the following questions: 19 a. What is the cost of common stock using retained earnings and the constant growth model? 20 21 b. What is the cost of common stock using the CAPM model? 22 23 c. What are the Net Proceeds of the bond issue? 24 25 d. Given the underwriter fees and other information above, what is the cost of debt for Starbucks? 26 27 e. What is the weighted average cost of capital of Starbucks given the information given? 28 Optional: You can calculate intermed coupon payment price of bond number of periods