1 have less risk than the average asset. Respectively a beta over 1 would be more risky than the average asset. Hershey Foods Corporation has a beta of .39. (www.smithbarney.com) This would indicate that investing in Hershey would be less risky than investing in the average stock.The company’s stock price has remained stable over this semester. As of November 26, 1999 the stock quote is $49 9/16. Over the past two months the stock has fluctuated from $47.625 on October 15th to $52.625 on November 2nd. This is not enough of a change that would label this stock unstable. However, when I researched back to last year’s quotes, I found that at the end of November in 1998 the stock was at a high of $68 7/8. (www.yahoo.com) This high could have been caused by the seasonality that this company has. Hershey gets busier during back to school, Halloween, Thanksgiving, and Christmas seasons. The reason why the company has not seen highs like that this year could be do to the inventory problems that I mentioned earlier. (www.sec.gov) In August of 1997 the company made 500 million dollars of debt securities were made available. As of October of 1999 half of the securities remained available. 230 million dollars of the company’s common stock was repurchased in February of 1999. This money was used to benefit Milton Hershey School. (www.sec.gov) The company holds 32.2 million dollars worth of Treasury Stock. The company currently holds 576.8 million dollars worth of debt. This can be borrowed to issue commercial paper. (www.sec.gov) In March of 1997 the company issued 6.95% notes. The money raised from these notes and other debt securities will be used to reduce ongoing debt. Funds will also be used for expanding business ventures, and paying off commercial paper borrowings. (www.sec.gov) In the year 2001 the company plans on lowering interest rates from 6.7% to 5.8% on notes that are payable in the year 2005. ...
