Part A: Weighted Average Cost of Capital (WACC)

Company: JOHNSON & JOHNSON

Here again is the formula for WACC. For simplicity the term for preferred stock has been removed Name of Com Ticker Symbol Stock WACC Cost of debt, in Corporate tax rate, Tc Total debt, D Total Total firm value, V Cost ofe CAPM Components Beta, Historical market return, i Risk-free rate Assumed 11% Assumed 3% 1. Using data in the table confirm the accuracy of the site's WACC calculation: Weight of Equity Weighted Average+D Cost of Equity Weight of Debt iE Pre-Tax Weighted Average Cost of Deb+D After-Tax Weighted Cost of Debt io Weighted Average Cost of|-4+ Capital --le-(1-T)