Question: Instructions Amount Hershey needs: $1 billion to build four new manufacturing plants outside the United States Interest rate: 3% Tax rate: 430/1,251=34% Srock price: $106

Instructions Amount Hershey needs: $1 billion to build four new manufacturing plants outside the United States Interest rate: 3% Tax rate: 430/1,251=34% Srock price: $106 as of January 1, 2015 Number of shares outstanding: 220 million 1. Prepare an EPS/EBIT analysis for Hershey. Determine whether Hershey should use all debt, all stock, or a 5050 combination of debt and stock to finance this market-development strategy. 2. Develop an EPS/EBIT chart after completing the EPS/EBIT table. 3. Next, give a 3-sentence recommendation for Hershey's CFO, Mr. David Tacka

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