Purchase Solution

Recent Changes in the Capital Structure of Starbucks

Not what you're looking for?

Ask Custom Question

Please discuss the capital structure and the cost of capital of Starbucks. Has their capital structure or cost of capital changed much over the past two years? If yes, explain the reasons for the change.

Purchase this Solution
Solution Summary

This 350-word solution defines capital structure in general and for Starbucks specifically, as well as explaining recent developments that have impacted the capital structure of Starbucks and how this may impact the company moving forward.

Solution Preview

When we say capital structure, it is in reference to the mix of debt and equity that finances a company's entire asset base. On page 45 of Starbucks Corporation's (NasdaqGS: SBUX) Annual Report for the fiscal year, which ended September 29th, 2013, we can see that the specialty eateries company is valued at about US $7,034 million in total liabilities and at US $4,482 million in total equity financing for its US $11,516 asset base. This means that Starbucks's liabilities is 61% of total assets, while equity is about 39% for the fiscal year that ended on September 29th, 2013.

The ...

Purchase this Solution
Free BrainMass Quizzes
Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Operations Management

This quiz tests a student's knowledge about Operations Management

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

View More Free Quizzes
Related BrainMass Solutions

  • Market Structure for Starbucks

    The labor supply is mainly dependent on the current economic situation. If we look at the Starbucks the company has done recent changes in its organization by affecting the labor supply.

  • Future Market Condition

    214747 Future Market Condition Analysis The market structure of Starbucks is a monopolistic competition.

  • Starbucks WACC for the attached data for years 2009, 2010.

    Note on cost of capital Capital structure determines the cost of the capital. Debt is less costly as compared to equity hence by adding debt one can reduce the equity.

  • Starbucks: Stock Price, Dividends, Capital, and Bonds

    Despite these initiatives, the performance of the company will also be tied to the price of coffee in the commodities markets, which the company has little control over.

  • Starbucks

    Now, changes in the interest rate environment such as rising of interest rate can affect the interest rate obligations of debt capital of the firm.

  • Cash Flow Statement for Starbucks

    The company has invested more than $300 million to repurchase its own stock to provide strength to the capital structure of the company.

  • Organizational Functions and Structures

    Furthermore it discusses the manner in which human capital is organized into the structure as influenced by the varied functions necessary for the smooth running of the organization; to do this, the solution provides minute case studies of organizations

  • Describe Organizational Structure of Amazon.com

    Another organizational structure called the matrix structure adopted by businesses like Starbucks, has become more prevalent in recent times. This structure is more of a team management style.

  • Applied Materials long-term financing policy

    Discuss what changes you think would occur to your finance policy and capital structure if your firm was forced to consider re-organization and bankruptcy strategies. d. Assume that your firm will be investing in the global market.

View More Related Solutions