Hill Country Snack Foods, situated in Austin, Texas, manufactures, markets, and distributes snack foods and frozen treats. The CEO believes in keeping tight management over prices and running the company as efficiently as possible and is enthusiastic about optimizing shareholder value. The organization invests in additional capacity and new products only when appealing, low-risk opportunities are identified and could be financed internally.
The CEO believes a strong balance sheet with substantial cash balances supplies the business with maximum security and flexibility. Sales increase has been steady but unspectacular. As the CEO tactics retirement, analysts and investors speculate that the organization is going to shift to a more aggressive capital structure. Students investigate three alternatives using debt finance, must assess the company's present capital structure, and determine the best debt-to-capital ratio.
PUBLICATION DATE: October 22, 2012 PRODUCT #: 913S04-HCB-SPA
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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