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Explain the difference between the capitalization rates

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Question - At the end of 2012. Firm Tootsie Roll had a price-earnings ratio of 30.7, and firm HERSHEY had a price-earnings ratio of 25.3. The concert to capitalization rates of 3.25% for firm TOOTSIE ROLL and 3.95% for firm HERSHEY. give the 30-year bond rate at the end of 2012 was about 3.0%, how you might explain the difference between the capitalization rates of these two companies in terms of the building criteria set forth in chapter?

Reference no: EM132043346

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