2. What are the weights for debt and equity for the last five years? Have they remained stable? Comment on the stability or lack of stability and how it would affect the company’s cost of capital.

Log onto the S&P Market Insight Web site, www.mhhe.com/edumarketinsight. Click on “Company,” which is the first box below the Market Insight title. Type Johnson and Johnson’s ticker symbol “JNJ” in the box and click on Go. Scroll down the left margin and click on “Excel Analytics.” At the top of the left margin you will see the second item listed as Ann. Balance Sheet. Click on “Ann. Balance Sheet” and find long-term debt and total common equity for the last five years. Add the two together to get total capital.