Conduct a thorough financial statement analysis

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Reference no: EM131299847

Given is the Case.

The CAse is about :-"Pacific Grove Spice Company".

Group Questions

1. Conduct a thorough financial statement analysis of PGS' projected financial statements to see if slowing the company's growth rate will allow it to meet the bank's requirements for reduced debt. What is it about this approach which may allow PGS to meet the bank's requirements? When will this happen?

2. Review the results of TV program financial analysis. Should PGS pursue this opportunity? Given its present situation with the bank, is it able to make this investment? What does this say about the assumption in finance theory that all positive NPV projects should be accepted.

3. Will issuing new equity under the proposal found on page 4 of the case solve PGS' problem with the bank. Analyze the income statement and balance sheet effects of this proposal. Assess the pros and cons of this approach.

Attachment:- Case_Pacific-Grove.rar

Reference no: EM131299847

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