| This tab is used to calculate Weighted Average Cost of Capital (WACC). Enter data in the yellow cells only. Comments to help you are indicated by a red triangle in the top right corner of cell; hover over the cell to review. | | | | | | | | | |
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| Enter Company Full Name: | | Starbucks Corp. |
| Enter Fiscal Year: | | 2018 |
| Starbucks Corp. |
| CAPITAL STRUCTURE |
| For End of Fiscal Year 2018 |
| Unaudited; Amounts USD x 1000 |
| SIMPLE METHOD | TEXTBOOK METHOD |
| | | Capital Funding Amount | Cost of Capital: Estimated % Return Req'd by Investors | Corporate Marginal Tax Rate % | 1 - Corp Tax Rate | % Cost of Capital, After Tax Savings | $ Cost of Capital per Year (Column C x Coumn G) | Wgt x Cost | % of Total |
| Debt: Bank Loans | | $ - | 0.0% | 20.0% | 80.0% | 0.0% | $ - | 0.0000% | 0.0% |
| Debt: Bonds | | - | 0.0% | 20.0% | 80.0% | 0.0% | - | 0.0000% | 0.0% |
| Debt: Commercial Paper | | - | 0.0% | 20.0% | 80.0% | 0.0% | - | 0.0000% | 0.0% |
| Debt: Other or Unidentified | | - | 0.0% | 20.0% | 80.0% | 0.0% | - | 0.0000% | 0.0% |
| Leases (a form of Debt) | | - | 0.0% | 20.0% | 80.0% | 0.0% | - | 0.0000% | 0.0% |
| Preferred Stock (if any) | | - | 0.0% | 0.0% | 100.0% | 0.0% | - | 0.0000% | 0.0% |
| Common Stock: At Par | | 1,300.0 | 0.0% | 0.0% | 100.0% | 0.0% | - | 0.0000% | 0.1% |
| Common Stock: Add'l Paid-in Capital | | 41,100.0 | 0.0% | 0.0% | 100.0% | 0.0% | - | 0.0000% | 2.7% |
| Retained Earnings | | 1,457,400.0 | 0.0% | 0.0% | 100.0% | 0.0% | - | 0.0000% | 97.2% |
| [Other] | | - | 0.0% | 0.0% | 100.0% | 0.0% | - | 0.0000% | 0.0% |
| TOTAL | | $ 1,499,800.0 | | | | | $ - | 0.0000% | 100.0% |
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| WEIGHTED AVERAGE COST OF CAPITAL: | | | | | | | | | |
| WACC = [$ Total Annual Cost of Capital] / [$ Total Capital Funding] = | | | | | $0 / $1499800 | = | 0.0000% | | |
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| | | Amount | Pct of Total | | | | | | |
| Total Debt, incl. Leases & Preferred Stock | | - | 0.0% | | | So Debt/Equity Ratio = | 0.0000% | | |
| Total Equity, incl "Other" | | 1,499,800.0 | 100.0% | | | And Debt/Total Capital Ratio = | 0.0000% | | |
| TOTAL CAPITAL | | $ 1,499,800.0 | 100.0% | | | | | | |
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This tab is used to calculate Weighted Average Cost of Capital (WACC). Enter data in the yellow cells only. Comments to help you Unaudited: Amounts USD x 1000 SIMPLE METHOD TEXTBOOK METHOD Capital Funding Amount Cost of Cost of Capita Capital After per Year (Column Cl Tax Savings x Coumn G) 0.0% 5 OOX of Total Cost of Capital Estimated Corporate Return Red Marginal Tax by investors Rate 1 004 20.0% 20.0% 00% 00% 200% 00% 2009 009 0.0% Date Bank Loans Debt: Bonds Debt Commercial Paper Debt Other or Unidentified Lenses a form of Debt Preferred Stockay Common Stock At Par Common Stock: Add Paid-in Capital Retained Eamings 0.0 0.0% 0.0% 1 - Corp Tax Rate 80.0% 80.0% 800 80.0% 80.0% 1000 100.0% 1000N 1000 100.0 0.0% 00% Wat Cost 0 0000% 00000% 0.0000% 00000 0.0000 00000% 00000 0.0000N 00000 00 00% 0.1% 1,3000 41.100.0 1457 4000 0.0% 0.0% 1000% TOTAL 1.499.0992 WEIGHTED AVERAGE COST OF CAPITAL: WACC = Total Annual Cost of Capital Total Capital Punding Amount Pet of Total 0.0000% 2 Dold Leases & Preferred Stock Se De ity Ratio And Dental Capital Ratio 29 TOTAL CAPITAL 1 This tab is used to calculate Weighted Average Cost of Capital (WACC). Enter data in the yellow cells only. Comments to help you are indicated by a red triangle in the top rig Starbucks Corp CAPITAL STRUCTURE For End of Year 2018 Unawed Amos USD 1000 SOC CAICC Debt Bank Loan Datos De Com Paper Debt: Othror Unded Les auf Pred to Commons AP Contok Anal WEIGHTED AVERAGE COST OF CAPITAL WACC Annus Contac t Fund Se D ate Anda Cape Total Equity, Inc TOTAL CAPITAL Ford The condividere This tab is used to calculate Weighted Average Cost of Capital (WACC). Enter data in the yellow cells only. Comments to help you a Amount Total Debt, Inc. Leases & Preferred Stock Total Equity, Ind "Other TOTAL CAPITAL 1499.800.0 1.499,800.0 Pet of Total 0 0% 100.0% 100.0% Se Debte quity Ratio And Debt/Total Capital Ratio 0.0000% 0.0000% 32 33 34 35 NOTES: a) The Corporate Marginal Tax Rate only affects debt and leases. For businesses. It is usually between 0% and 50%. For nonprofits and goverments, it is always 0% b) Leases are a form of debt. c) Retained Earnings are basically common stock dividends that have not been paid out. Retained earnings therefore have the same required rate of return as common stock d) in an organization, the treasurer is typically the best source for all of this information 37 HOW TO ESTIMATE REQUIRED RATE OF RETURN FOR COMMON STOCK 40 Dividend Constant Growth Stock Valuation Model Example: (Dividend / SCurrent Price). Expected % Dividend Growth Rale ($1.50/$20.00) 6.5% 0.0750065 0.140 - 14.0% Only works cont r e growth is expected Intrinsic Value Method he The internal rate of retur (IRR) of the sure cash fows investors expect to receive. Use a spreadsher Ronction to Evaluate reasonable estimates for industry averages or for other organizations with similar . Not easy, by the way Industry Averages (Note to Instructional Designers and Teachers: Financial History tab data does not feed into this worksheet.) This tab is used to calculate Weighted Average Cost of Capital (WACC). Enter data in the yellow cells only. Comments to help you Unaudited: Amounts USD x 1000 SIMPLE METHOD TEXTBOOK METHOD Capital Funding Amount Cost of Cost of Capita Capital After per Year (Column Cl Tax Savings x Coumn G) 0.0% 5 OOX of Total Cost of Capital Estimated Corporate Return Red Marginal Tax by investors Rate 1 004 20.0% 20.0% 00% 00% 200% 00% 2009 009 0.0% Date Bank Loans Debt: Bonds Debt Commercial Paper Debt Other or Unidentified Lenses a form of Debt Preferred Stockay Common Stock At Par Common Stock: Add Paid-in Capital Retained Eamings 0.0 0.0% 0.0% 1 - Corp Tax Rate 80.0% 80.0% 800 80.0% 80.0% 1000 100.0% 1000N 1000 100.0 0.0% 00% Wat Cost 0 0000% 00000% 0.0000% 00000 0.0000 00000% 00000 0.0000N 00000 00 00% 0.1% 1,3000 41.100.0 1457 4000 0.0% 0.0% 1000% TOTAL 1.499.0992 WEIGHTED AVERAGE COST OF CAPITAL: WACC = Total Annual Cost of Capital Total Capital Punding Amount Pet of Total 0.0000% 2 Dold Leases & Preferred Stock Se De ity Ratio And Dental Capital Ratio 29 TOTAL CAPITAL 1 This tab is used to calculate Weighted Average Cost of Capital (WACC). Enter data in the yellow cells only. Comments to help you are indicated by a red triangle in the top rig Starbucks Corp CAPITAL STRUCTURE For End of Year 2018 Unawed Amos USD 1000 SOC CAICC Debt Bank Loan Datos De Com Paper Debt: Othror Unded Les auf Pred to Commons AP Contok Anal WEIGHTED AVERAGE COST OF CAPITAL WACC Annus Contac t Fund Se D ate Anda Cape Total Equity, Inc TOTAL CAPITAL Ford The condividere This tab is used to calculate Weighted Average Cost of Capital (WACC). Enter data in the yellow cells only. Comments to help you a Amount Total Debt, Inc. Leases & Preferred Stock Total Equity, Ind "Other TOTAL CAPITAL 1499.800.0 1.499,800.0 Pet of Total 0 0% 100.0% 100.0% Se Debte quity Ratio And Debt/Total Capital Ratio 0.0000% 0.0000% 32 33 34 35 NOTES: a) The Corporate Marginal Tax Rate only affects debt and leases. For businesses. It is usually between 0% and 50%. For nonprofits and goverments, it is always 0% b) Leases are a form of debt. c) Retained Earnings are basically common stock dividends that have not been paid out. Retained earnings therefore have the same required rate of return as common stock d) in an organization, the treasurer is typically the best source for all of this information 37 HOW TO ESTIMATE REQUIRED RATE OF RETURN FOR COMMON STOCK 40 Dividend Constant Growth Stock Valuation Model Example: (Dividend / SCurrent Price). Expected % Dividend Growth Rale ($1.50/$20.00) 6.5% 0.0750065 0.140 - 14.0% Only works cont r e growth is expected Intrinsic Value Method he The internal rate of retur (IRR) of the sure cash fows investors expect to receive. Use a spreadsher Ronction to Evaluate reasonable estimates for industry averages or for other organizations with similar . Not easy, by the way Industry Averages (Note to Instructional Designers and Teachers: Financial History tab data does not feed into this worksheet.)
