To counter the several risks in the business and ensure maximum shareholder value.docx

To counter the several risks in the business and ensure maximum shareholder value.docx

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Caution and risk prevention are the main cultural and managerial philosophy of Hill Country Snack Foods. Hill country functions in a very a competitive environment which makes it accessible to its clients. In such a competitive Industry the prices also tend to be very competitive. The main reason for the success of Hill Country is its provision of quality products, its locality geographically and efficient operations. Some of the risk faced by the company include macroeconomics conditions and the consumer’s preference for healthy foods To counter the several risks in the business and ensure maximum shareholder value, this company has evaluated three alternative debt-to-capital ratios. All these ratios offer a tax protection advantage and thus maximize the company’s value. The rating of the bond is AAA/AA that indicates low original occurrence of risk. Increasing the levels of debt will result to huge financial costs. A ratio of 20.0% indicates that it is lower than its competitors, a ratio of 40.0%
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern