Question 2: Starbucks valuation The balance sheet and income statement for Starbucks is provided below. Assume that 2 % of cash and cash equivalents are used in operations. Based on this information, A) Calculate the FCFF in the year 2014 B) Calculate the FCFE in the year 2014. Assume that growth in FCFE and FCFF is 2.0 % every year starting in 2015 . Suppose that the cost of capital is 5 % and the cost of equity is 5.5 %. The number of shares outstanding is 1,480,000,000 C) Calculate the value of the firm, the value of the equity, and the value of each share using the FCFF approach D) Calculate the value of the equity using the FCFE approach