1. Assume that today is December 31,2023 , and that the following information applies to J\&J, a relatively mature company: - After-tax operating income [EBIT(1-T)] for end of year 2023 was $650 million. - The depreciation expense for 2023 was $140 million. - The capital expenditures for 2023 was $225 million. - The change in net working capital from previous year (investment in working capital) was $30 million. - The free cash flow is expected to grow at a constant rate of 3.5% per year perpetually. - The cost of equity is 14% - The weighted average cost of capital (WACC) is 10% - The market value of the company's debt is $3.875 billion. - J\&J has $100 million worth of non-operating assets. - 200 million shares of stock are outstanding. a. What should be the value of J\&J today (the firm)? b. What should be the value of JJ's Common Equity? c. What should be the intrinsic value of JJ's stock's price? 2. From problem 1, assume analysts estimate that J\&J's free cash flow is expected to grow on average, at a rate of 7% per year for the next 5 years after which growth is expected to moderate to 3.5% at a constant rate. The only assumption we are changing here from problem1 is the expected growth in the free cash flow of the firm. With this new assumption: a. What should be the value of J\&J today (the firm)? b. What should be the value of JJ's Common Equity? c. What should be the intrinsic value of JJ's stock's price