(Flow Diagram, IS-BS Model, and Case Exhibits are included for your convenience.)

1. Can PGS comply with the bank's requirements?

Explain why or why not, using the results of the forecast in the Q1 tab.

2. Should PGS accept or reject the proposed TV Show project?

In your explanation, critically judge the pros and cons of the data presented in Case Exhibit 3.

3. Is $27.50 per share a reasonable price for PGS common stock?

In your explanation, consider its dilutive impact, and

whether or not PGS should use equity financing.

4. Should PGS acquire High Country Seasoning? Be specific and analytical.

In your explanation, discuss the debt capacity of HCS.

(see HINT on Q4 tab)

5. Under what conditions would High Country Seasoning be a good LBO target? Explain fully.

Answer as if you are a young private equity manager looking to convince your boss

about your guile and skill. Structure the deal you would like to make.