Looking for help with a Discounted Cash Flow Model on Johnson and Johnson. You should already have most of the necessary information, and what you

Looking for help with a Discounted Cash Flow Model on Johnson and Johnson.

You should already have most of the necessary information, and what you don’t have is quickly available on Yahoo Finance under ticker JNJ. For this assignment please:

Choose a reasonable market premium

Calculate CAPM

Find a bond value for JNJ

Calculate WACC

Choose a reasonable forecast period

Determine a perpetuity growth percent

Forecast Free Cash Flows over the period chosen

Use the perpetuity growth chosen

Calculate the value of the business

Make some observation comparing your value to the market value

What might be the cause of difference?

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