1. 1. A. What is the immediate problem facing CEO Peterson?
   2. B.HowdidPacific?sindustry,businessmodel,strategy,performance,growth,financing,capitalstructure,andoperatingenvironmentcombinetocreatethisproblem?
   3. C. Can the firm quickly work out of this problem?
   4. D. How does this problem constrain the firm?s operations?
   5. E. Based on Pacific Grove Spice Company?s forecast(ed) financial statements, are its profitable operations sufficient to quickly bring the firm into compliance with the bank?s requirements?
2. 1. A. Should Pacific produce and sponsor the new television program?
   2. B. If yes, how should the firm finance the necessary investment?
   3. C. How attractive is this opportunity?
   4. D. Is the firm in a position to take advantage of this opportunity?
3. 1. A.Should Pacific issue new common stock to the external investment group?
   2. B. What are the strengths and weaknesses of this opportunity?
4. 1. A. Should Pacific acquire High Country Seasonings?
   2. B. Is this a good investment opportunity?
   3. C. What are its free cash flows, risk-adjusted cost of capital, and value?
   4. D. Is this a positive NPV for Pacific?
5. 1. A. Is the acquisition of High Country for stock a good financing decision?
   2. B. Will the acquisition solve Pacific?s financial problems and bring the company into compliance with the bank?s requirements without investing in the new television program?
   3. C. Is the company still in compliance if Pacific decides to produce and sponsor the television program?
6. 1. A. How are the opportunities presented in the case interrelated?
   2. B. What alternatives produce the maximum benefit to Pacific?s shareholders?