As a new junior analyst for a brokerage firm, you are excited to demonstrate the skills you learned in college and prove that you are worth your attractive salary. Your first assignment is to analyze Johnson& Johnson stock. Your boss recommends determining prices based on both the discounted free cash flow valuation method and the comparable P/E ratio method. You are really hoping the two methods will reach similar prices. Good luck!

Find the following information for the stock symbol "JPM" :

A. Determine companys Cost of Capital rate

B. Determine horizon enterprise value for year five (5) using LT Growth Rate and 10% cost of capital for your firm.

C. Determine enterprise value of the firm as the present value of the Free Cash Flows

D. STOCK PRICE I: Determine price per share of the firm from enterprise value

E. STOCK PRICE II: Company price estimate as a comparable to firm

F. Multiply industry average P/E ratio by your firms EPS.