Starbucks WACC analysis

Determine the cost of debt:

Determine the cost of equity:

Determine the capital structure of the firm: Determine the market value of the firms debt and equity. Explain the approach and procedure you used and use these values to determine the weights for the WACC.

Notes: I will ask that you use the bond that was issued most recently - as that provides the most accurate information regarding your company's current cost of debt. To find that most recently issued bond, you will have to search in the "Notes to the Consolidated Financial Statements" in your company's 10K, or you can Google Company XXX bond/debt issuance. Using the bond issued most recently is far more realistic than either of the two previous methods, and it also reflects the method used most often in practice. You can watch the video online called How to Calculate the Weighted Average Cost of Capital on utube.

Finally, provide an overall explanation for your results and how the firm will use this WACC.