Question 9. (30 points). Calculate cost of equity and WACC for Starbucks if the following information is available. Present your answers in 96 format, rounding to one decimal point. Latest 10-year US Government Bond-2.36%. e Company's beta -0.73. . Market premium-5.75%. . Relevant stock price $59.70. Marginal tax rate-40%. e You can use information from appendix A to find missing financial information. APPENDIX A. STARBUCKS CORPORATION CONSOLIDATED STATEIENTS OF EARNINGS im maillions, except per share daa 168441 CPG, foodservice and other 21,3159 Cost of sales including occupancy costs 2,818.9 STARBUCKS CORPORATION CONSOLIDATED BALANCE SHEETS in millions, exceptper share data) ASSETS Current asset 21213 15301 $13 7190 13064 134.4 1,378.5 350.0 4,760.5 1,141.7 354.5 Inventories Prepaid expenses and other curent assets Total urent assets 3,9710 Equity and cost investments Deferred income taxes, pet Other intangible assets TOTAL ASSETS 4,533. 885.4 417.7 516.3 1,719.6 1,1S0S 520.4 12,4163 Ober loog-terma ass LIABILITIES AND EQUITY Current liabilities 730.6 6842 1,7553 246.0 2245 983.8 Accounts payable Accrued habilities 1,999. Stored value card habaility Current portion of long-term debt 1,171.2 400.0 4,5469 3,2022 689.7 8,438.8 Total curent liabilities 3,648.1 Ober long-term babilities Total iabilities Sharebolders' equity Common stock (50.001 par value)- autborized, 2,400.0 shares; issued and outstanding, 1,460.5 and 1,485.1 shares, respect Additional paid-in eapital 1.1 (108.4) 6.7 41.1 5,9498 5,974 Accumulated other comprebensive loss 199.4) Total shareholders' equity 5,8180 Total equity TOTAL LIABILITIES AND EQUITY 43295 24163 STARBUCKS CORPORATION CONSOLIDATED STATEMENTS OF EQUITY nmall ions, exce per share a) Total Balance, September 29,2013 2,0681 20681 185.1 1548 04) 2,0677 (41 185.1 185.1 Evercise of stock of RSUs, 65 03 1548 154.8 223 Cash dividends decdared, $O 550 per share Balancs, September 28, 2014 827.0 8270 (827 0) 2,757.4 2,759 3 211.7 of steck of RSUs, of $131.3 146 06 2244 2244 224 4 23.5 23.5 235 Cash dividends declared 30 680 per share 1,0162 os) (10162) 10162 7494 Balance September 27, 2015 15 8180 18 $ 5,819 189 91.0 91 0 of sock f RSUs 98 153.0 1530 153 0 049 1,596 5 1 995 6 S0 850 per share Balancs Oeteler 2, 2016 41. 1 (IO84