Case Study Hill Country Snack Foods Co. Question 1: Describe Hill Country’s operating strategy. How does this operating strategy impact the company’s business risk. Question 2: Why shareholders do not...

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Case Study Hill Country Snack Foods Co. Question 1: Describe Hill Country’s operating strategy. How does this operating strategy impact the company’s business risk. Question 2: Why shareholders do not like the firm having large cash balances? Question 3: What are the advantages of adding debt to the firm’s capital structure? Question 4: What are the disadvantages of adding debt to the firm’s capital structure? Question 5: What capital structure (debt to capital ratio) would you recommend for Hill Country Snack Foods, and why? Question 6: If the firm decides to implement debt financing, what methods would you recommend the firm use to increase debt and decrease equity? Question 7: How would the financial markets (stock and bond markets) react if the company increases its financial leverage? Question 8: Considering Hill Country’s corporate culture, what arguments could you use to persuade CEO Keener or his successor to change its capital structure?