ULBII analysis for Hershey. Determine whether Hershey should use all debt, all stock, or a 50-50 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, Mi:. David Tacka. EXERCISE 8D Prepare Projected Financial Statements for Hershey Company Purpose This exercise is designed to give you experience preparing projected financial statements. This analy- sis is a strategic finance/accounting issue because it allows managers to anticipate and evaluate the expected results of various strategy-implementation approches Instructions Work with a classmate. Develop a projected 2016 income statement and balance sheet for Hershey. Assume that Hershey plans to raise $900 million to increase its market share, and plans to obtain 50 percent financing from a bank and 50 percent financing from a stock issu- ance. Make other assumptions as needed, and state them clearly in written form. Step 1 Step 2Compute Hershey's projected current ratio, debt-to-equity ratio, and return-on-investment ratio. How do your projected ratios compare to prior year ratios? Why is it important to make this comparison? To begin your analysis, start with the Hershey's 2015 actual financial statements given at http://finance,yahoo.com or the company website. encountered. ULBII analysis for Hershey. Determine whether Hershey should use all debt, all stock, or a 50-50 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, Mi:. David Tacka. EXERCISE 8D Prepare Projected Financial Statements for Hershey Company Purpose This exercise is designed to give you experience preparing projected financial statements. This analy- sis is a strategic finance/accounting issue because it allows managers to anticipate and evaluate the expected results of various strategy-implementation approches Instructions Work with a classmate. Develop a projected 2016 income statement and balance sheet for Hershey. Assume that Hershey plans to raise $900 million to increase its market share, and plans to obtain 50 percent financing from a bank and 50 percent financing from a stock issu- ance. Make other assumptions as needed, and state them clearly in written form. Step 1 Step 2Compute Hershey's projected current ratio, debt-to-equity ratio, and return-on-investment ratio. How do your projected ratios compare to prior year ratios? Why is it important to make this comparison? To begin your analysis, start with the Hershey's 2015 actual financial statements given at http://finance,yahoo.com or the company website. encountered
