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11. You are considering investing in Starbucks Bond or Stock? The Starbucks bond matures in 10 years and your yield to maturity is 2.4%. Starbucks current stock price is $115, with a beta of 0.88 and dividend that will be paid next year of $1.80. Assume that a 10 year US Govt Bond has an yield of 1.65%. A). Calculate the Cost of Equity for Starbucks using CAPM model? B). Compare the Starbucks Bond and the US Govt Bond, what is the reason for the difference in the yield? C). Calculate the Starbucks Stock price using the Gordon's growth model/growing perp. formula assuming a 3% dividend growth rate? Should you buy the stock based on this calculated value? Why? D). Calculate the Starbucks Stock price using the Gordon's growth model/growing perp. formula assuming a 4% dividend growth rate? Should you buy the stock based on this calculated value? Why? E). Compare the stock and bond of Starbucks, what is a better investment? Why