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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 form 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 your response in total 2300-2500 words count. 

Microeconomics, Economics

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