Law and Real Estate Essay

Executive SummaryPacific Grove alter started as a micro specialty grocer on the Monterey Peninsula of California in the early 1980s. Within 10 days they were the place to find spices in Central California and now have a widespread elapse covering all 50 states. The spice industry that it is in has been maturation steadily because of how important a role spices are getting in the kitchens and in cooking. The growing concern about obesity and diet has in any case left a positive impact because of the health conscious masses that desire healthier meals that are still favorable. The demand for spices is at an incomparable high and although multinational firms like McCormick & Company dominate the industry, many small firms are competing successfully, Pacific Grove spice being one of them.The worry that Debra Peterson and Fletcher Hodges are having is that they have three choices to make. They have to decide whether they should accept an run from a cable-cooking network to produ ce and sponsor a new program, bone new paleness by selling shares of common stock, and/or originate High Country Seasonings-a privately owned spice company. While fashioning their decision they have to keep in mind that the bank financial support their company wants them to reduce interest-bearing debt to less than 55% of total assets and the equity multiplier factor to less than 2.7 times by June 2012. We recommend thatIntroductionDebra Peterson is shortly the top dog Executive Officer of the Pacific Grove gaminess Company. The Chief Financial Officer, Fletcher Hodges, and she are trying to figure out what strategy to throw to meet the demands of the bank that finances their company. The recent financial crisis had made the faith committee uneasy and they now want Pacific Grove Spice to reduce interest-bearing debt to less than 55% of total assets and the equity multiplier to less than 2.7 times by June 2012. They have three options they are presently considering and thi s case study illustrates the financial forecasts for the next few years and showcases what we timbre is the best decision for them regarding their options and the banks demands.AnalysisPacific Grove Spices operations are not profitable enough to quickly sustainit into compliance with the banks requirements. Itll take about four years with just the regular operations.