For the company Johnson & Johnson: There is no page length given for this as it can vary greatly. This section is to be

divided up based on the topics. In each section, you must show and explain the

equations that are used. In addition, you are to draw any conclusions on the

company you can from this data. Please note that detailed worksheets showing all

of the calculations for this section are to be included in an appendix.

Cost of Equity $($Common Stock$)$

Beta from Regression and two Betas from analysts

Beta Chosen for CAPM and why

Capital Assets Pricing Model $($include how determined $R_F$ and or $\{$:$(R_M-R_F)]$

Discounted Cash Flow $($DCF$)($only if dividends $-$ include how determined$)$

Own$-$Bond$-$Yield$-$plus$-$Judgmental$-$Risk$-$Premium $($include how determine risk

premium$)$

Cost of Preferred Stock

Cost of Debt $($make sure to include table that lists all bond issues with

weighted average cost of debt$)$

Market Value of Debt $($will have calculated above, but will need to add any

long term leases from balance sheet to get total market value of debt$)$

Market Value of Equity

Market Value of Preferred Stock

Value of Firm

Firm's Tax Rate $($explain how determined$)$

Weight for Equity

Weight for Preferred Stock

Weight for Debt

WACC $($Weighted Average Cost of Capital$)$

You are to draw any conclusions on the company you can from this data. Please note that detailed worksheets showing all of the calculations are required.

$$ Cost of Equity $($Common Stock$)$

o Beta from Regression and two Betas from analysts

o Beta Chosen for CAPM and why

o Capital Assets Pricing Model $($include how determined RF and$[$ RM or $($RM $$ RF$)]$

o Discounted Cash Flow $($DCF$)($only if dividends $$ include how determined$)$

o Own$-$Bond$-$Yield$-$plus$-$Judgmental$-$Risk$-$Premium $($include how determine risk

premium$)$

$$ Cost of Preferred Stock

$$ Cost of Debt $($make sure to include table that lists all bond issues with

weighted average cost of debt$)$

$$ Market Value of Debt $($will have calculated above, but will need to add any

long term leases from balance sheet to get total market value of debt$)$

$$ Market Value of Equity

$$ Market Value of Preferred Stock

$$ Value of Firm

$$ Firm$$s Tax Rate $($explain how determined$)$

$$ Weight for Equity

$$ Weight for Preferred Stock

$$ Weight for Debt

$$ WACC $($Weighted Average Cost of Cap