Question
Compute the WACC and assess the capital structure for Johnson & Johnson (JNJ). Should the company change its capital structure? Why or why not? Please
Compute the WACC and assess the capital structure for Johnson & Johnson (JNJ). Should the company change its capital structure? Why or why not? Please make sure you clearly state all of your assumptions as well as the reasoning behind them (For example, if you use a 2% risk free rate in your calculations, clearly indicate this assumption and explain why 2% is a reasonable choice).
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Financial Management Principles and Application
Authors: Arthur J. Keown, J. William Petty, David F. Scott, Jr.
10th edition
536514119, 536514110, 978-0536514110
