Please review then answer case 12.1. Parts A-P are all required for full answer credit.

INTEGRATIVE CASE 12.1 Starbucks Free Cash Flows Valuation of Starbucks' Common Equity In Case 10.1, we projected financial statements for Starbucks for Years +1 through +5. In this portion of the Starbucks Integrative we use the projected financial statements from Case 10.1 and apply the techniques learned in this chapter to compute Starbucks' required rate of return on equity and share value based on the free cash flows valuation models. We also compare our value estimate to Starbucks' share price at the time of the case development to provide an investment recommendation. The market equity beta for Starbucks at the end of 2012 is 0.75. Assume that the risk-free interest rate is 3.0% and the market risk premium is 6.0%. Starbucks has 749.3 million shares outstanding at the end of 2012. At the start of Year +1, Starbucks' share price was $50.15