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Starbucks Module 6

Starbucks Module 6. Adrian Serles. Regression Analysis. - rft = α + β * ( Mktt - rf ) + e t. - = .022 + .961 * ( - ) + .0663. Beta estimates. Cost of Equity Capital. Beta Choice: .821 (Bloomberg). Cost of Debt Capital. *NFA.

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Starbucks Module 6

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  1. StarbucksModule 6 Adrian Serles

  2. Regression Analysis - rft = α + β * (Mktt - rf) + et - = .022 + .961 * (- ) + .0663

  3. Beta estimates

  4. Cost of Equity Capital • Beta Choice: .821 (Bloomberg)

  5. Cost of Debt Capital *NFA ***As discussed in Note 3, we entered into forward-starting interest rate swap agreements related to this debt issuance that effectively locked in the benchmark interest rate, resulting in an effective borrowing cost of 2.86%.

  6. Cost of Enterprise Capital

  7. DCF @ WACC

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