Connecting Theory t Practice $-$ Firm Level Risk Analysis on Starbucks.You should target approximately one to two paragraphs for each required item. Here's a streamlined example outline for two paragraphs, focusing on Starbucks:Paragraph $1$: Financial and Operational Risk AnalysisDiscuss Starbucks' financial stability by examining its debt$-$to$-$equity ratio, which indicates the companys reliance on debt financing. Additionally, assess the current ratio to evaluate its ability to cover short$-$term obligations. Highlight operational efficiencies by referencing the company's inventory turnover ratio, reflecting on how well Starbucks manages its inventory relative to sales, and the DSO to show the effectiveness of its credit policies and cash collection processes.Paragraph $2$: Market Risk Analysis and Theoretical ApplicationAnalyze Starbucks' market risk by looking at the beta of its stock to understand how its price movements correlate with the overall market. Reflect on any surprising trends in volatility or stock performance, especially in relation to market events. Connect these observations to theoretical frameworks like the CAPM to discuss how Starbucks market risk could impact its cost of equity. Finally, if appropriate, you could mention insights from applying Modigliani and Miller's theorem to Starbucks' capital structure decisions or use Altmans Z$-$score as a theoretical measure to comment on the financial health of Starbucks.For both paragraphs, ensure you're using the most recent financial data and interpreting it through the lens of the relevant financial theories. The goal is to present a nuanced, individual analysis that demonstrates a strong grasp of both Starbucks' financial particulars and the theoretical concepts at play.