Starbucks' head of strategy had recently suggested acquiring Whitbread Plc$,$ a diversified hospitality company. Whitbread consists of two businesses: hotels and Costa Coffee. Costa Coffee is the world's second largest coffee chain, operating $2,420$ outlets in its domestic market $($i$.$e$.,$ United Kingdom$)$ and $1,399$ outlets overseas. Whitbread is expected to generate $3\mathrm{.}3$ billion in total revenue and $319\mathrm{.}1$ million in cash flows this year. Growth in cash flows is expected to remain stable at $3\mathrm{.}0\%.$ Given limited overlap in operations, the acquisition would only generate $15\mathrm{.}0$ million annually in cash synergies by next period. Assuming a $25\%$ premium on current stock price, Whitbread would cost $10,725$ million to acquire. Starbucks' cost of capital is $6\mathrm{.}5\%($i$.$e$.,$ discount rate$).$