Below is data for Starbucks (SBUX) Corporation. Use this data (or select pieces of the...
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Finance
Below is data for Starbucks (SBUX) Corporation. Use this data (or select pieces of the data) to determine: A) Starbucks After Tax Cost of Debt B) Starbucks Cost of Equity C)Starbucks WACC (weighted average cost of capital). Shares outstanding 1,146,400,000,000
Share price $106.71
Cost of new debt 3.30%
Optimal D/E ratio 2/3 ($2 of debt for every $3 equity, HINT: use this data to get Wd, and We)
Beta of firm 0.83
Market Risk Premium 10%
Risk Free Rate 3.9%
Tax rate 21%
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