Exhibit contains income statements and balance sheets of The Hershey Company. The following information applies to Hersheys
Question:
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.
DistributionThe word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Introduction to Financial Accounting
ISBN: 978-0133251036
11th edition
Authors: Charles Horngren, Gary Sundem, John Elliott, Donna Philbrick