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A oard.com/ultralcotirses/ 69100. 1/cl/outine | | ' Discussion Board #3 AY rrp Tn a Strategic Finance article, the authors stated that “COVID-19 1s fundamentally reshaping wildly fluctuating revenue and incurring expensas that did not exist pre-COVID forcing many companies to revise or retract their financial forecasts The of the valuations depends on the reliability of the forecast assumptions and the valuation parameters. Often by the ime a finance team delivers the latest rounds o forecasts and budgets to the C-suite, they're outdated.” Follow the lnk read the full article: hitps://sfmagazin e com/post-entry/aprik2021-fi anci 'forecasting-amid-covid-19/. For this discussion board you must respond to the following questions. ] =. 1. How much reliance can financial analyst place on financial projections and the anticipated cash flows of Starbucks over the n > How relevant is Starbucks’ historical formation in the post-COVID-19 environment? a Starbucks stock closed at $97.95 on November 18, 2022, the date the Form 10.K for the fiscal year ended October 2, 2022, was filed How does your valuation estimate on the Valuation tab of the FSAP with this closing price? What do you believe are some reasons fo difference? What investment decisions is suggested from your results? = = how businesses and finance teams forecast Businesses are exper Bv Wednesday, December 7. you should post vour initial Tes onse to the questions By Sunday, December 11, you should vead cts. Post a response to at least 2 of these messages (postings). eplies should include an insightful comment or altemative viewpoint thought the same”, le and do not enrich the discussion experience. “You are right” and other short genenc statements are not acceptab Chapter 11 Assignment - In this assignment your are to compl Hi JH Hi Hil aI | Rl (Expand All| || coupe al Tae EE J Ismin Brinson i | | rn 3 | iH | | Hid | Ih i | 1 iit rely on the financial projections and anticipated cash flows of Starbucks over the : a x : ti next five years with mi wii onk [ies I the pas few years with minimal “waming®, the 5-vear forecast is too far in advance to confid ie forecast processes already account for disruptions such as natural disas ters, it was already difficult for anticipate projections for long-term disasters such as a pandemic. 2 de Re no longer rely on historical data since this recent pandemic. This post-COVID-19 ep financial frameworks (example. Three Steps to Move toward ynamic Planning). Historical data js used to build fin urelevant data contributes to the unreliable forecasts, as mentioned in the previous response. P. 3 The valuation tab estimates a closing price of $114.92 per share. This may differ from the actus] clos ; : have completed since year end. Or the PE they were looking at to expand customer access that may p y Co x individual share values. Ii 1. Even with Starbucks’ analysts utilizing processes such as rolling forecasts and collaborate throughout [if i He ll Mh IHL | t for natural disas i erhaps in a few years integrated processes that can better account for natural disasters that will include COVID-19 data as r : elevant histon ng prc bec Hn HL HUD I entire organizat; f a =A Mirnet? Ih Wn { ik | fil | ently project companies ( ET i Be Actions HHH Lorena Minja’ Discussion 3 J ill Lath HE ¢s over the Sta Ducks has been performing well for the past five years aside from 2020 where there was a slight decrease duet Th rs show a steady increase of sales, and the fame Starbucks has all over the world makes it muc i11/!l| professionals to purchase from them. This trend will likely stay like that for years to come until Starbucks will have to m || market. The anticipations will make a great basis of forecast but again they are only forecasts given the current market. Ni || happen in two or three years down the road with any company. The fact that a war is taking place in Ukraine makes the globa econ ||| /and blossom. i | | Despite, all of this | think those financials will be similar in the years to come with minor ups and downs depending on the inflation {H | 2. How relevant is Starbucks’ historical information in the post-COVID-18 environment? Starbucks was one of the companies that were able to adapt during the pandemic. They operated with drive thru's and made their sales that they had a drop is sales. in investments, in revenues, and in net income. This is foreseeable in that uncertain event that no one kn covid 19 information is relevant but not the most accurate one. People spend a little more after the pandemic as they started enjoying doing wh i free to do during the pandemic. Stores opened back up and the sales increased drastically from 2020. In a way it was expenses that had bee HHH years. Those historical data are accurate but not as relevant to predict cash in the years to come. HT Ln scal year ended October 2, 2022, was filed believe are some reasons for this differer 3. Starbucks stock closed at $97.95 on November 18, 2022. the date the Form 10K for the fi | i your valuation estimate on the Valuation Lo of the FSAP with this closing price? What do you Hie decisions is suggested from your results? : aa : tion tab, my current share price came to $153.76. Since this is higher than the 97.95 stock price as of November 18. 20: in Yel to the La This shift might have come due to the current war happening in Ukraine that as a matter of psy as Pa - the world with America being one of them and Europe the first on the line. Inflation, instability of the market, the index fluctuating day after day 5 over this inflation and interest rates that keep increasing from the Federal Reserve Bank has made the price go down in 2022. Investors are y toi t in Starbucks as they don't know where the market is headed this creates a gap of trust in Starbucks and not only. j Panies Ed DE period. However, considering the market Starbucks is not performing bad at all. FLERE Ah es UFARIRR RRA ll HN HE | Il Ll) HH I il i | I HH En Hl I I | | | | HH | [ [| NHR EE — ll | i! ii ONL FREER i | Angel a Montana HA i | : Di IH fil | Ha Hi cussion Post 3 HA il fi of ypoisctions and the nticipated cas pandemic into consideration for thei pr tion provided. When reviewing a financial s = a necessary requirement since it can describ yearly downfalls and an insight to operations, but and investors, bookkeepers, sccountants, an CPAs 0 deeper level to those financial statements. | io How relevant is Starbucks’ historical information in the post-COVID-19 environment? | think Starbucks was able to capture and adapt to the COVID-192 environment The s wit || report and that they were unsure of the financial statement impact that id con - They described how the pandemic has in stores and those stores were made into "to go” only for a time being. Yes his still unknown for most businesses, especially within the retail and hospitality industry. As businesses forced in to, Starbucks handled the pandemic as best as they could and provided present information with what they had on hand. | 1 the Form 10 ucks stock closed at $97.95 on November 18, 2022, the date ! ) Sli your valuation estimate on the Valuation tab of the F SAP with this closi What investment decisions is suggested from your results? -K for the fiscal year ended October 2, 2022, was fi ng price? What do you believe are some reasons for th : i re price came to 114.02. Since this is a tad higher than the 97.05 stock price as of November 18, 2022, | can cor Iu Within my Yalu to Dh, oa that stocks have decreased. When looking at the market today compared to the end of 2021, the ude there Were Shifts 20 me and personal & business expenses have skyrocketed. It is expected that the current 2022 stock price would have decreas multiple shifts. infla ted. Since Starbucks has multiple locations across a vast majority of countries, | think there should be little change within the investment frig: DE is bound to change within the coming months or year, and investments like Starbucks should continue to rise despite the current downfs I mail Author | | LC | Quote Em er] ; \ L y BB Expand All Collapse All