Managerial Economics
Assignment: Starbucks Directions: Recently, Starbucks acquired Teavana for $620 million for the company which represented at 50% premium from Teavana’s then
valuation. Discuss the recent acquisition, the probable growth of the tea industry and Starbucks’ decision from a capital budgeting outline. Then create an
alternative capital budgeting scheme that Starbucks could have realistically used in its acquisition. Be sure to discuss the risks, and how Starbucks could mitigate
these risks, in your analysis. Write up your report in a 750 to 1,000 word APA formatted paper (not including title page, Certificate of Authorship, or references)
