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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 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,
Mr. David Tacka.

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