Balance Sheet and High Country
3. High Country Seasonings is both an investment opportunity and a financing opportunity. Should Pacific acquire High Country Seasonings?
Suggested approach – investment opportunity:
(a) Forecast High Country’s Income Statement and Balance Sheet for 2012-2015.
(b) Determine High Country’s free cash flow to investors.
(c) Is High Country’s valuation greater than what Pacific must pay to acquire the firm?
(d) From an investment standpoint, should Pacific acquire High