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Please elaborate in words on how "Weighted Avg COE" was solved. Cost of...

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Finance

imagePlease elaborate in words on how "Weighted Avg COE" was solved.

Cost of debt Risk-free rate of Return Beta & R(m) CAPM Weighted Avg COE WACC Calculation of Cost of Equity of STARBUCKS CORPORATION under Gordon's Growth Model: For the Fiscal year ended 29th September, 2020 Expected Rate of Return (Erp) (Expected Dividend Payment (DI)/Stock Price (MPS)) + Forecasted Growth rate in Dividend (G) Growth rate in Dividend Expected Dividend Payment (DI)= Dividend paid in the Current year (Do) + Growth Rate in dividend (G) Stock price = Current Price the stock as on 29th Sept, 2020 Current year Dividend payment (Do) = S1.23 Growth Rate 0.0744334 Expected Dividend Payment for the year ended 29th September 2021 = 1.322 DPS (S) Dividend Growth Rate 0.85 - 1.05 19.05% 1.32 20.45% 1.49 11.41% 1.23 -21.14% Price of the Stock as on 29th September, 2020 = Year ending 29th Sept, 2016 29th Sept, 2017 29th Sept, 2018 29th Sept, 2019 29th Sept, 2020 $84,80 Expected Rate of Return with Gordd'eslodel - Weight alloted 0.5 Weighted average Cost of Equity = 6.2104 % No. of periods = Average Growth Rate Dividend = 0.07443 or

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