Please calculate starbucks WACC for the attached data for years 2009, 2010, 2011 using excel.
Starbucks financials are attached.
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. But excess of debt can lead to very high financial risk and thereby increase the cost of capital. Thus the company has to maintain the right balance between the debt and equity.
Marginal cost and WACC are two ...
Solution helps to calculate Starbucks' WACC for the attached data for years 2009, 2010, 2011