1. How much business risk does Wildwood face? How much financial risk would the company face at each of the three alternative debt-to-capital ratios presented in case Exhibit 4? How much value could Wildwood create for its shareholders at each of the three alternative debt levels? 2. What debt-to-capital structure would you recommend as optimal for Wildwood Cola & Snacks? What are the advantages of adding debt to the capital structure? How would issuing debt impact the companys taxes and expected costs of financial distress? How would the financial markets react if the company increased its financial leverage? 3. How could Wildwood implement a more aggressive capital structure? What alternative methods (in addition to the option proposed in the case) could be used to increase debt and decrease equity? 4. Considering Wildwoods corporate culture, what arguments could you use to persuade CEO Jennings or his successor to adopt and implement your recommendation? 5. Discuss the efficiency of Wildwoods capital structure, according to theory discussed in class. 6. Assuming profitable operations and retention of earnings, how long would the company remain at its optimal debt level after a one-time debt issue?