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The acquisition of HS Business seems to be a feasible possibility as it is actually making a greater intrinsic benefit more than The existing inventory rate. To see the affect of these kinds of acquisition around the funding desires of Pacific Grove, the acquisition is assumed to finance Using the proceeds of prevalent stock issuance.

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The company’s CEO wants to maximize the personal debt levels about the High County’s harmony sheet and using the personal debt proceeds to repay the personal debt. It's assumed that the most standard of financial debt can be stored fifty% of the entire fairness after deducting the current liabilities from the entire assets. The personal debt level equalled to $4.862 million (See Appendix 6) after the proposed personal debt maximization assumption.

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