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Starbucks is trying to determine whether it is better to pay for the 1,000 Reserve stores via debt or stock. Each store costs 1 million
Starbucks is trying to determine whether it is better to pay for the 1,000 Reserve stores via debt or stock. Each store costs 1 million dollars. Assume an EBIT range of 12 billion dollars to 20 billion dollars, an interest rate of 3%, a tax rate of 21%, a stock price of $80, and $1.3B shares outstanding.
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