(10 Points)What is the immediate problem facing CEO Peterson? How did Pacific’s industry, business model, strategy, performance, growth, financing, capital structure, and operating environment combine to create this problem? Can Pacific quickly work its way out of this problem? How does this problem constrain Pacific’s operations? (10 Points)How attractive is the opportunity to produce and sponsor the new television program? Is Pacific in a position to take advantage of this opportunity? (20 Points)Should Pacific sell new common stock to the external investment group? What are the strengths and weaknesses of this opportunity? (75 Points)Is the acquisition of High Country a good investment opportunity? What are its free cash flows, risk-adjusted cost of capital, and value? Is this a positive net present value decision for Pacific? (20 Points)Is the acquisition of High Country for stock a good financing decision? 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? Is the company still in compliance if Pacific decides to produce and sponsor the television program? (15 Points)How are the opportunities presented in the case interrelated? What alternatives produce the maximum benefit to Pacific’s shareholders?RubricQuestion 1 10.0ptsFull Marks 8.0ptsMost 5.0ptsSome 0.0ptsNo Marks 10.0ptsThis criterion is linked to a Learning OutcomeQuestion 2 10.0ptsFull Marks 8.0ptsMost 5.0ptsSome 0.0ptsNo Marks 10.0ptsThis criterion is linked to a Learning OutcomeQuestion 3 20.0ptsFull Marks 15.0ptsMost 10.0ptsSome 0.0ptsNo Marks 20.0ptsThis criterion is linked to a Learning OutcomeQuestion 4 75.0ptsFull Marks 57.0ptsMost 38.0ptsSome 0.0ptsNo Marks 75.0ptsThis criterion is linked to a Learning OutcomeQuestion 5 20.0ptsFull Marks 15.0ptsMost 10.0ptsSome 0.0ptsNo Marks 20.0ptsThis criterion is linked to a Learning OutcomeQuestion 6 15.0ptsFull Marks 12.0ptsMost 8.0ptsSome 0.0ptsNo Marks 15.0ptsTotal Points:150.0

(10 Points) What is the immediate problem facing CEO Peterson? How did Pacific’s industry, business model, strategy, performance, growth, financing, capital structure, and operating environment...

(10 Points)What is the immediate problem facing CEO Peterson? How did Pacific’s industry, business model, strategy, performance, growth, financing, capital structure, and operating environment combine to create this problem? Can Pacific quickly work its way out of this problem? How does this problem constrain Pacific’s operations?

(10 Points)How attractive is the opportunity to produce and sponsor the new television program? Is Pacific in a position to take advantage of this opportunity?

(20 Points)Should Pacific sell new common stock to the external investment group? What are the strengths and weaknesses of this opportunity?

(75 Points)Is the acquisition of High Country a good investment opportunity? What are its free cash flows, risk-adjusted cost of capital, and value? Is this a positive net present value decision for Pacific?

(20 Points)Is the acquisition of High Country for stock a good financing decision? 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? Is the company still in compliance if Pacific decides to produce and sponsor the television program?

(15 Points)How are the opportunities presented in the case interrelated? What alternatives produce the maximum benefit to Pacific’s shareholders?

Question 1

10.0ptsFull Marks

8.0ptsMost

5.0ptsSome

0.0ptsNo Marks

10.0pts
This criterion is linked to a Learning OutcomeQuestion 2

10.0ptsFull Marks

8.0ptsMost

5.0ptsSome

0.0ptsNo Marks

10.0pts
This criterion is linked to a Learning OutcomeQuestion 3

20.0ptsFull Marks

15.0ptsMost

10.0ptsSome

0.0ptsNo Marks

20.0pts
This criterion is linked to a Learning OutcomeQuestion 4

75.0ptsFull Marks

57.0ptsMost

38.0ptsSome

0.0ptsNo Marks

75.0pts
This criterion is linked to a Learning OutcomeQuestion 5

20.0ptsFull Marks

15.0ptsMost

10.0ptsSome

0.0ptsNo Marks

20.0pts
This criterion is linked to a Learning OutcomeQuestion 6

15.0ptsFull Marks

12.0ptsMost

8.0ptsSome

0.0ptsNo Marks

15.0pts
Total Points:150.0

May 03, 2020