Question: Looking at this Dividend Discount Model for Starbucks, and using general knowledge: What would be your investment recommendation for Starbucks Corp? Dane'dend discocent Model-(starbucks) Discounted

Looking at this Dividend Discount Model for Starbucks, and using general knowledge:

What would be your investment recommendation for Starbucks Corp?

Dane'dend discocent Model-(starbucks) Discounted cash flow (DCF) valuation method measures value of stock to be estimated based on cash plows, dere den d gowth rate and reuered rate of returen Reauerred rate of metum for Starbucks - (2018) Rate of melum on trecuury RA 1.947. Expeered retum from the Portfolio 11.65 1. systematic P'S K (P) Ps 0.65 So, starbuck's rate of retum = RF + Bs [Elem) -RA] = 1.94 +0.65 (11-654e- 1.91 %] = 8.22.1. De're dend growth rate (2018) - Ren Lenton sate = 0.57 profit margin = 14.284. asset turnover = 1.41 financial coverage = 3.36 so, di've dend growth of Starbucks = (0.57 X14.284. * 1.41*2.36) = 27.26% is calculated Hence, in this way dividend growth rate by diredend discount Model. Dane'dend discocent Model-(starbucks) Discounted cash flow (DCF) valuation method measures value of stock to be estimated based on cash plows, dere den d gowth rate and reuered rate of returen Reauerred rate of metum for Starbucks - (2018) Rate of melum on trecuury RA 1.947. Expeered retum from the Portfolio 11.65 1. systematic P'S K (P) Ps 0.65 So, starbuck's rate of retum = RF + Bs [Elem) -RA] = 1.94 +0.65 (11-654e- 1.91 %] = 8.22.1. De're dend growth rate (2018) - Ren Lenton sate = 0.57 profit margin = 14.284. asset turnover = 1.41 financial coverage = 3.36 so, di've dend growth of Starbucks = (0.57 X14.284. * 1.41*2.36) = 27.26% is calculated Hence, in this way dividend growth rate by diredend discount Model

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