PLEASE USE 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 calculate Beta based on last five years data. Use S&P returns in your market estimate. You can obtain historical prices on Yahoo Finance.

Use 30-year US Treasury Bond yield as your risk-free rate (Yahoo Finance > Markets > US Treasury Bond Rates) and assume the market return as 8%.

Calculate total number of shares based on Total Market Capitalization and current market price. Use the market value of common stock in your calculation.

Assume Starbucks preferred stock market price as 22 $ and outstanding number of preferred stocks as 250.000.000. Preferred dividend of Starbucks is 2.5$.

Assume Starbucks only has long term debt and use the value of debt on the balance sheet for the end of 09/30/2019. Find the interest expense for the same period and calculate cost of debt.

Use effective tax rate based on tax expense and taxable income on 09/30/2019 income statement.