Exhibit contains income statements and balance sheets of The Hershey Company. The following information applies to Hersheys

Exhibit contains income statements and balance sheets of The Hershey Company. The following information applies to Hershey’s common stock, excluding the Class B shares, which are not publicly traded. In 2011, Hershey paid cash dividends of $1.38 per common share, the market price at December 31, 2011, was $61.78 per share, and basic EPS was $2.85.

1. Compute the following ratios for 2011: (a) P-E, (b) dividend-yield, (c) dividend-payout, and (d) market-to-book value.

2. Assess Hershey’s market price and dividend ratios for 2011 compared with the following industry averages for the food processing industry as provided by Reuters and with ratios computed for Tootsie Roll , a competitor in the candy manufacturing, marketing, sales, and distribution industry. See a description of the food processing industry in problem.

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Reuters Averages (as of August 31, 2012) 34.83 Tootsie Roll (for year ended December 31, 2011) 30.24 Price-eamings Dividend-yield Dividend-payout Market-to-book value 1.61% 46.44% 5.86 1.40% 42.11% 1.98