Capital Structure of Johnson & Johnson (Assignment)

Capital Structure of Johnson & Johnson (Assignment)

Compute the WACC and assess the capital structure for Johnson & Johnson (JNJ). Should the
company change its capital structure? Why or why not? Please make sure you clearly state all of
your assumptions as well as the reasoning behind them (For example, if you use a 2% risk free
rate in your calculations, clearly indicate this assumption and explain why 2% is a reasonable
choice).