WEEK 6 Paper. Use the link at the top of this section to submit your paper. Click “Browse My Computer” and attach your paper as a MS Word document. Then click “Submit.” Research and Analysis Paper 3: As a new junior analyst for your firm, your first assignment is to research, analyze, and value Johnson & Johnson stock (NYSE listed). Your boss recommends determining prices based on both the discounted cash flow method and comparable P/E ratio method. You are concerned about your bosss recommendation because your Corporate Finance professor explained that these two valuation methods can result in widely differing estimates when using real data. You are hoping the two methods will reach similar prices. Good luck with that! Your assignment is: Find and download the Johnson & Johnson 2019 Annual Report including Form 10-K for the fiscal year ending December 29, 2019. Go to Reuters (http://www.reuters.com) and enter the symbol for Johnson & Johnson (JNJ) in the search box at the top of the web page (select Johnson & Johnson JNJ). From the Reuters, the website collects the following information (you should be able to find this in the free sections) and enter it into an Excel spreadsheet: The current stock price (last trade upper left of page) The EPS (TTM) The number of shares outstanding The Industry PE Ratio (TTM) you may need to look elsewhere for this. From the Key Metrics, tab scroll down to find the Revenue Growth Rate (5Y), enter the number in your spreadsheet. Go to Morningstar (http://www.morningstar.com) and enter JNJ into the Search Quotes and Site box. Select Johnson & Johnson under the U.S. Securities section. Under “Financials” click Income Statement. Copy and paste (or use Export to Excel to create anew file) the most recent three years (2017-2019) of income statements into a new worksheet in your existing Excel file. Repeat this for the balance sheets and the cash flow statements for Johnson & Johnson. Keep (or copy) all the different financial statement data in the same Excel worksheet NOTE: Make sure you are collecting the Annual data, NOT the Quarterly data. To determine the stock value using the discounted cash flow method: Forecast the free cash flows. Start by using the historical data from the financial statements downloaded from Morningstar to compute the three-year average of the following ratios: EBIT/Sales Tax Rate (income tax expense/income before sales) Property, plant & equipment/Sales Depreciation/property, plant & equipment Networking capital/sales Create an empty timeline for the next five years Forecast future sales based on the most recent years total revenue growing at the LT growth rate (5Y average) from Reuters for the first five years of the forecast. Use the average ratios from step 5. a. above to forecast EBIT, property plant & equipment, depreciation, and networking capital for the next five years. Forecast the the free cash flow for the next five years using Eq. 10.2 from the text (Section 10.1 in text). Determine the horizon enterprise value for year 5 using Eq. 10.6 and a long-term growth rate of 4% and a cost of capital of 11% for JNJ. Determine the enterprise value of the firm as the present value of the free cash flows. Determine the stock price using Eq. 10.4. Note: your enterprise value is in thousands of dollars and the number of shares outstanding Is in billions. To calculate an estimate of the JNJ price based on a comparable P/E Ratio, multiply the industry average P/E ratio by JNJ EPS. Compare the stock values from both methods to the actual stock price. Submit a two-page double spaced paper summarizing for your boss your analysis and valuation with a few brief summary exhibits explaining how your analysis and outlook are quantified in your valuation model. Would you recommend investing in the company? Why or why not? For more information on Johnson and Johnson Stock read this:
So much stress and so little time? We’ve got you covered. Get your paper proofread, edited or written from scratch within the tight deadline.
Why Use Do My Paper Service by MyPaper Support
Quality Urgent Paper Help
MyPaper Support online platform provides the best essay writing and do my paper service ever received elsewhere, thanks to our professional essay writers. Experience gained in the 10+ years of being in the essay paper help industry is also an added advantage.
Do My Paper Service by Professional and Experienced Academic Writers
A lot is done to maintain us as the best essay paper help service provider. Besides owning a degree from a recognized university, a writer must pass the rigorous tests we take them through before they are considered eligible to offer urgent essay paper help on our website.
Affordable Urgent Essay Paper Help
Who said a reliable website should not be cheap also? While it is human nature to associate prices with quality, that does not always work. At mypapersuppport.com, we guarantee you cheap and urgent essay paper help without compromising the quality.
24/7 Do My Paper Service
Whether it is a ‘write my essay for me cheap’ or ‘edit my essay’ order you want to request, always feel free to reach us at any time of the day. Our experts work in shifts to ensure that you access urgent essay writing services at any time of the day.
Plagiarism Free Paper Support
The punitive measures that come with plagiarized content are so harsh, and we understand that. We consequently ensure to write each client’s papers from scratch no matter how urgent the essay is. To acknowledge borrowed content, our quick writer references and cites the work.
Wow Customer Support 24/7
Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
Our Do My Paper Services
So much stress and so little time? Take care of yourself: let us help you with your tasks. We offer all kinds of paper help services.
Essays
No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.
Admissions
Admission and Business Papers
An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.
Editing
Editing and Proofreading
Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.
Coursework
Revision Support
If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the paper help service offered.