Questions for Hill Country Snack Foods Company Case

1. Using the methodology and format contained in Exhibit 4, produce Pro Forma 2011
Financial Information for Hill Country Snack Foods Company on the following basis:

a. If it had the Capital Structure of Snyder’s Lance Inc.

b. If it had the Capital Structure of PepsiCo Inc.

40 Marks

2. How do the alternate Capital Structures in Part 1 above affect Hill Country Snack
Foods Company’s:

a. Business and Financial Risk?

b. Firm Value?

c. Share Value?

Please provide quantitative and qualitative factors

30 Marks

3. Giving your reasons, state what debt-to-capital structure you would recommend for
Hill Country Snack Foods?
(In your reasoning, please include comments on firm value, shareholder returns,
the impact of taxes, the costs of distress, management risk appetite, and the
reactions of the debt & equity providers.)
30 Marks

Submission Date: 2nd April 2022 – 9.00 p.m. Dv