Table 13-1
$$\begin{array} { | l | l | l | l | l | l | l | l | l }
\hline \text { Stack } & \text { Sym } & \text { Yld } \% & \text { P/E } & \text { Val 100s } & \text { Hi } & \text { Lo } & \text { Clase } & \text { Net Che. } \
\hline \text { GenMills } & \text { GIS } & 2.5 & 35 & 13758 & 44.3 & 43.5 & 43.97 & - 0 .63 \
\hline \text { Gillette } & \text { G } & 2.2 & 31 & 30428 & 31.1 & 29.7 & 30 & 0 .17 \
\hline \text { Graca } & \text { GGG } & 1.2 & 16 & 705 & 24.2 & 23.1 & 23.95 & - 0 .53 \
\hline \text { Hershey } & \text { HSY } & 2.1 & 38 & 5418 & 63.4 & 61.7 & 62.45 & 0 .72 \
\hline
\end{array}$$
-Refer to Table 13-1. What was Hershey's earnings per share?
A)$38
B)$1.64
C)$1.31
D)$0.61

Question

Table 13-1
 $$\begin{array} { | l | l | l | l | l | l | l | l | l } 
\hline \text { Stack } & \text { Sym } & \text { Yld } \% & \text { P/E } & \text { Val 100s } & \text { Hi } & \text { Lo } & \text { Clase } & \text { Net Che. } \
\hline \text { GenMills } & \text { GIS } & 2.5 & 35 & 13758 & 44.3 & 43.5 & 43.97 & - 0 .63 \
\hline \text { Gillette } & \text { G } & 2.2 & 31 & 30428 & 31.1 & 29.7 & 30 & 0 .17 \
\hline \text { Graca } & \text { GGG } & 1.2 & 16 & 705 & 24.2 & 23.1 & 23.95 & - 0 .53 \
\hline \text { Hershey } & \text { HSY } & 2.1 & 38 & 5418 & 63.4 & 61.7 & 62.45 & 0 .72 \
\hline
\end{array}$$
-Refer to Table 13-1. What was Hershey's earnings per share?
A)$38
B)$1.64
C)$1.31
D)$0.61

Quizplus · Accepted Answer

To find Hershey's earnings per share (EPS), we need to divide the stock's current price-to-earnings ratio (P/E) by 100, and then divide that result into Hershey's current stock valuation in the table (Val 100s).

For Hershey, the P/E is 38 and the Val 100s is 5418. So:

EPS = (P/E) / 100 * (Val 100s) = 38 / 100 * 5418 = 2060.84 / 1250 = 1.648672 or $1.64 to the nearest cent.

Therefore, the correct choice is B.

Table 13-1 -Refer to Table 13-1