View the step-by-step solution to:

Question

1. Calculate the cost of each capital component, after-tax cost of debt, cost of preferred, and cost of

equity with the DCF method and CAPM method.

2. What do you estimate the company’s WACC?

Please use data from the provided worksheet. Let me know if you find anything wrong with the data if it interferes with solving the above problems. Please add a new worksheet to the workbook attached. Thank you!!

Group 1 Interim Report 1 Johnson & Johnson Company Overview For generatons, almosT every household in The UniTed STaTes has used some form of p WiTh a growing producT line ThaT daTes back from 1886, Johnson & Johnson is one of The w ±he company sTarTed wiTh The ²rsT commercially available ²rsT aid kiT. WiTh major acqu hisTory, They were able To inTroduce oTher producTs ThaT became household iTems such as m women. In The hospiTal and surgical rooms, They inTroduced The ²rsT coronary sTenT, which To ³ow To The hearT by keeping vessels open. ±his device revolutonized cardiology and help diseases. WiTh over 250 subsidiary companies under Johnson & Johnson, The company is sTrucTu Pharmaceutcal, and Medical Devices. Some of iTs mosT recognizable brands in The consum LisTerine®, and Benadryl®. In The pharmaceutcal segmenT, Their number selling medicaton abouT 9.4% of Johnson & Johnson’s 2015 ToTal revenue. In This segmenT of Johnson & Johns oTher Therapeutc areas such as oncology and immunology medicines. ±heir Medical Device of Their revenue in 2015. While keeping This in mind, Johnson & Johnson’s Medical Device s world in Terms of revenue. SusTainabiliTy and growTh is always a concern, even for This massive and hisTorical comp impressive growTh raTes. Some concerns come from The revenue decline of every caTegory oTher issue sTems from The recenT approval of a cheaper generic version of Remicade® from Johnson has been proactve and looks To combaT declining growTh by investng $9 billion in meeT The evolving healTh care needs of The aging populaton in developing natons and To f Johnson & Johnson was held privaTely for nearly 5 decades before going public in 1944 invesTors Through The New York STock Exchange. Since They began publicly Trading, They hav earning increases and 54 years of uninTerrupTed years of increases in dividends. ±he follow quoTe for The company. JusT in The lasT year, Their 52-week low was aT 89.90.
Background image of page 01
Johnson & Johnson Last Price 118.23 Volume 7.96 Million Day Change 1.24-1.04% *Friday Sep 9, 2016 4:02 PM References Blake, H. (n.d.). A history of. .. Johnson & Johnson - Pharmaphorum. Retrieved September 11, 2016, and-analysis/a-history-of-johnson-johnson/ Johnson & Johnson. (2015). Retrieved September 11, 2016, from hTp://±les.shareholder.com/downloads/JNJ/1709744668x0x881109/474857DD-8E67-43B1-BB38- 0A9712D93545/2015_annual_report_.pdf MDDI Sta². (2014, November 21). ³op 40 Medical Device Companies. Retrieved September 11, 201 hTp://www.mddionline.com/ar´cle/top-40-medical-device-companies NYSE. (2016, September 9). Johnson & Johnson. stock quote. Retrieved from hTps://www.nyse.com ³he Associated Press. (2016, April 05). F.D.A. Clears Cheaper Version of Johnson & Johnson Biologic hTp://www.ny´mes.com/2016/04/06/business/fda-clears-cheaper-version-of-johnson-johnson-bio rref=collec´on/´mestopic/Johnson & Johnson
Background image of page 02
Show entire document
Sign up to view the entire interaction

Top Answer

View the full answer
9797912.xlsx

Group 1 Interim Report 1 Johnson & Johnson Company Overview For generations, almost every household in the United States has used some form of product from Johnso With a growing product line...

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask a homework question - tutors are online