I need help with these questions below??? I am stuck. I did what I understood from my assignment thus far (see excel spread sheet). Please help. Thanks.

1. Determine the horizon enterprise value for year 5 with a long-term growth rate of 4% and a cost of capital of 11% for JNJ.
2. Determine the enterprise value of the firm as the present value of the free cash flows.

1. See work done below for above mentioned questions:

DCF & CPER Calculations & Three-Year Averages

Historical Data Components/Ratios201720182019 Three Year Average

Business Revenue76,450,000,00081,581,000,00082,059,000,00080,030,000,000

Cost of Goods and Services25,354,000,00027,091,000,00027,556,000,00026,667,000,000

Operating Income/Expenses32,382,000,00034,441,000,00034,423,000,00033,748,666,667

EBIT18,714,000,00020,049,000,00020,080,000,00019,614,333,333

Sales76,450,000,00081,581,000,00082,059,000,00080,030,000,000

iEBIT/Sales24.48%24.58%24.47%24.51%

Income tax expense16,373,000,0002,702,000,0002,209,000,0007,094,666,667

Income before sales17,673,000,00017,999,000,00017,328,000,00017,666,666,667

iiTax Rate (Income tax expense/Income before sales)92.64%15.01%12.75%40.13%

Property, plant & equipment17,005,000,00017,035,000,00017,658,000,00017,232,666,667

Sales76,450,000,00081,581,000,00082,059,000,00080,030,000,000

iiiProperty, Plant & Equipment/Sales22.24%20.88%21.52%21.55%

Depreciation24,461,000,00024,816,000,00025,674,000,00024,983,666,667

Property, plant & equipment17,005,000,00017,035,000,00017,658,000,00017,232,666,667

ivDepreciation/Property, Plant & Equip1.441.461.451.45

Current Assets43,088,000,00046,033,000,00045,274,000,00043,088,000,000

Current Liabilities30,537,000,00031,230,000,00035,964,000,00033,597,000,000

Net Working Capital12,551,000,00014,803,000,0009,310,000,00012,221,333,333

Sales76,450,000,00081,581,000,00082,059,000,00080,030,000,000

vNet Working Capital/Sales16.42%18.15%11.35%15.30%

JNJ Stock Rundown DCF Share Price $

Stock Price$152.41

EPS (TTM)$7.97 P/E Ratio Share Price$

Shares Outstanding2,632,820,000

P/E Ratio$26.65

Revenue Growth Rate (5Y)2%

Market

Capitalization401,268,096,200

Total Net Earnings20,983,575,400

Ratios201620172019Three Year Average

EBIT/Sales24.48%24.58%24.47%24.51%

Tax Rate92.64%15.01%12.75%40.13%

Property, Plant & Equipment/Sales22.24%20.88%21.52%21.55%

Depreciation/Property, Plant & Equip1.441.461.451.45

Net Working Capital/Sales16.42%18.15%11.35%15.30%

Future Five Years Sales Revenue Forecast at LTGR

2020 2021 2022 2023 2024

2019 82,059,000,000

LTGR (5Y)@ 2%

83,700,180,000 85,374,183,600 87,081,667,272 88,823,300,61790,599,766,630

Above Ratios Calculations for Next Five Years Forecast of EBIT, PPE, Depreciation, and NWC

20202021202220232024

EBIT20,513,384,56520,923,652,25721,342,125,30221,768,967,80822,204,347,164

Property, Plant & Equipment

Depreciation

NWC12,808,336,62513,064,503,35713,325,793,42413,592,309,29313,864,155,479

Free Cash Flow Calculations

20202021202220232024

EBITx(1-Tax Rate)

Add: Depreciation

Minus: Capital Expenditures

Minus: Increases in NWC

Free Cash Flows