In a Strategic Finance article, the authors stated that COVID-19 is fundamentally reshaping how businesses and finance teams forecast. Businesses are experiencing wildly fluctuating revenue and incurring expenses that did not exist pre-COVID forcing many companies to revise or retract their financial forecasts. The reasonableness of the valuations depends on the reliability of the forecast assumptions and the valuation parameters. Often by the time a finance team delivers the latest rounds of forecasts and budgets to the C-suite, theyre outdated. Follow the link read the full article: https://sfmagazine.com/post-entry/april-2021-financial-forecasting-amid-covid-19/. For this discussion board you must respond to the following questions.

1. How much reliance can financial analyst place on financial projections and the anticipated cash flows of J&J over the next five year?

2. How relevant is J&Js historical information in the post-COVID-19 environment?

3. On the Valuation tab of the FSAP Excel spreadsheet enter the following information for J&J to determine the valuation estimate for the company. All valuation approaches should provide an equivalent (or close to the same) valuation.

a. Beta

b. Risk-free rate of return (typically a 10-year government bond yield)

c. Average market risk premium in U.S. (rose slightly to 5.6% in 2022)

4. J&J's stock closed at $160.39 on February 17, 2023, the date the Form 10-K for the fiscal year ended January 1, 2023, was filed with the SEC. How does your valuation estimate on the Valuation tab of the FSAP with this closing price? What do you believe are some reasons for this difference? What investment decisions is suggested from your results?