using Hershey $2023$ and $2022$ financial statements, nternet Assignment $4$

Analysis: Debt vs Equity Financing Analysis

Objective: Analyze your company$$s most recent Annual Report to draw conclusions

about $($a$)$ components of equity and $($b$)$ use of debt vs equity for financing.

Analyze Equity

$1.$ Compare the amounts of Contributed Capital vs$.$ Earned Capital $(20$ points$)$

$2.$ What are the components of contributed capital? Does the company issue preferred or

common stock? How many shares are outstanding? What is the amount of par vs

Additional Paid$-$In capital? $(25$ points$)$

$3.$ Did the company pay dividends? If so$,$ how much? Why do companies choose to pay

dividends? $(10$ points$)$

$4.$ What is the company$$s Earnings Per Share? $(5$ points$)$

$5.$ Did the company repurchase any stock $($Treasury Stock$).$ If so$,$ how much? Why might a

company choose to buy back its own stock? $(10$ points$)$

Debt vs$.$ Equity Financing

$1.$ Compare the company$$s use of debt vs$.$ equity for financing. Provide a brief analysis

that includes total dollar amounts for each and draw conclusions about whether the

company prefers owner or non$-$owner financing. $(20$ Points$)$

$2.$ What are the Pros and cons of debt vs$.$ equity financing? $(10$ Points$)$

Note:

Assignments should be professionally prepared and well$-$written with no

spelling$/$grammatical errors.

Check the Assignment Rubric to see how you will be graded.