2.1 Financial Ratio of Hershey’s Food Corporation
2.2 Organizational Chart of Hershey’s Food Corporation
2.3 Market Positioning of Hershey’s Food Corporation
2.4 Marketing Strategy of Hershey’s Food Corporation
2.5 Map Locating of Hershey’s Food Corporation
2.6 Web-site and E-commerce of Hershey’s Food Corporation
2.7 Value of the Firm Analysis of Hershey’s Food Corporation
2.8 Strenght and Weaknesses of Hershey’s Food Corporation
2.9 IFE of Hershey’s Food Corporation
3.1 Major Competitors of Hershey’s Food Corporation
3.2 Competitive Profile Matrix of Hershey’s Food Corporation
3.3 Key Industry Trends and Key External Trends of Hershey’s Food Corporation
3.4 Opportunities and Threats of Hershey’s Food Corporation
3.5 EFE of Hershey’s Food Corporation
4.1 SWOT Matrix of Hershey’s Food Corporation
4.2 SPACE Matrix of Hershey’s Food Corporation
4.3 BCG Matrix of Hershey’s Food Corporation
4.4 IE Matrix of Hershey’s Food Corporation
4.5 Grand Strategy Matrix of Hershey’s Food Corporation
4.6 QSPM of Hershey’s Food Corporation
5.1 EPS/EBIT Analysis of Hershey’s Food Corporation
-Earnings Before Interest & Tax - EBIT
An indicator of a company's profitability, calculated as revenue minus expenses, excluding tax and interest. EBIT is also referred to as "operating earnings", "operating profit" and "operating income", as you can re-arrange the formula to be calculated as follows:
|EBIT = |Revenue - Operating Expenses |
Also known as Profit Before Interest & Taxes (PBIT), and equals Net Income with interest and taxes added back to it.
In other words, EBIT is all profits before taking into account interest payments and income taxes. An important factor contributing to the widespread use of EBIT is the way in which it nulls the effects of the different capital structures and tax rates used by different companies. By excluding both taxes and interest expenses, the figure hones in on the company's ability to profit and thus makes for easier cross-company comparisons.
EBIT was the precursor to the EBITDA calculation, which takes the process further by removing two non-cash items from the equation (depreciation and amortization).
-Earnings Per Share - EPS
The portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company's profitability.
When calculating, it is more accurate to use a weighted average number of shares outstanding over the reporting term, because the number of shares outstanding can change over time. However, data sources sometimes simplify the calculation by using the number of shares outstanding at the end of the period.
Diluted EPS expands on basic EPS by including the shares of convertibles or warrants outstanding in the outstanding shares number
- Hershey’s Food Corporation
Hershey’s Food Corporation needs to raise $1million to finance implementation of a market development strategy. The company’s common stock currently sells for $50 per share and 100,000 shares are outstanding. The prime interest rate is 10 percent and the company’s tax rate is 50 percent. The company’s earning before interest and taxes next year are expected to be $2 million if a recression occurs, $4million if the economy stays as is, and $8 million if the economy significantly improves. EPS/EBIT analysis can be used to determine if all stock, all debt or some combination of stock and debt is the best capital financing alternative. | |Common Stock Financing |Debt Financing |Combination Financing | | |Recession |Normal...
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