PLEASE ANSWER IN EXCEL

Calculate weighted average cost of capital (WACC) for Starbucks Corporation (Ticker:SBUX).

Use Capital Asset Pricing Model in your analysis for cost of common stock estimate and use Beta based on last five years monthly prices. (You can obtain stock beta from Yahoo Finance).

Use current 10-year US Treasury Bond yield as your risk-free rate and assume the market return as 8%.

Use the market value of common stock in your calculation.

Assume Starbucks preferred stock market price as 80 $ and outstanding number of preferred stocks as 250.000.000. Preferred dividend of Starbucks is 6$.

Assume Starbucks has following bonds outstanding only;

Bond 1: 100,000,000 bonds outstanding, price is 109$ with a face value of 100$. It pays quarterly coupons, time to maturity is 10 years and annual coupon rate is 8%.

Bond 2: 200,000,000 bonds outstanding, price is 95$ with a face value of 100$. It pays annual coupons, time to maturity is 15 years and annual coupon rate is 6%.

Use the average yield of those bonds as cost of debt and assume 21% tax rate in your calculations