Question: Does Starbucks capital structure differ from their industry average? Why or why not? (Industry averages should be taken from Bloomberg). Propose a change to their
Does Starbucks capital structure differ from their industry average? Why or why not? (Industry averages should be taken from Bloomberg). Propose a change to their existing capital structure that you believe will benefit the firm. Justify your reasons for this change. Include the new values of the capital structure ratios that result from your proposed change.
Finally include the impact to the firms stock price resulting from changes to the capital structure, i.e. issuance of additional shares of equity or issuance of new debt. The construction of a Market Value Balance Sheet with the existing capital structure and the proposed capital structure should be included.
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