K

7.5%

7.5%

13%

Spread

16.0%

15.5»

15.5%

15.2%

15.1%

the key drivers of value are return on invested capital (relative to WACC) and growth is generally applicable for all companies. Exhibit 8.9 shows the calculation of Hershey's return on invested capital. Exhibit 8.10 shows Hershey's historical and projected performance in terms of growth and return on invested capital. These results are summarized below:

Forecast

Hershey Foods 1989-93 1994-98 1999-2008

Corporation (percent) (percent) (percent)

Average spread

Spread 9.3 12.8 15.2 Average annual growth

Revenues 9.4 3.1 4.5

Invested capital 9.9 2.3 4.6

Exhibit 8.10 Hershey Foods—ROIC and Growth Trends

Exhibit 8.10 Hershey Foods—ROIC and Growth Trends

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