Question: Please show work Assume the equity beta for Johnson 3:. Johnson (ticker: JNJ) is 0.55. The yield on 10-year treasuries is 4%, and you estimate

Please show work

Please show work Assume the equity beta for
Assume the equity beta for Johnson 3:. Johnson (ticker: JNJ) is 0.55. The yield on 10-year treasuries is 4%, and you estimate the market risk premium to be 6%. Furthermore, Johnson 6r. Johnson issues dividends at an amiual rate of $3.81. Its current stock price is $92 .00, and you expect dividends to increase at a constant rate of 4% per year. The market values of the conunon stock, preferred stock, and debt were $46,240 million, $1350 million, and $16,000 million, respectively. The debt is trading at 90%, with a quarterly coupon payment with a Coupon rate of 13.2?% and their corporate taxes are 32%. Assume the maturity is in 10 years. The price of the preferred stock is two dollars less than the common stock, with dividends of $6.00 dollars. The Company intends to invest in a project that will cost 11.1M and will increment the cash ows by 4.5M. Estimate Jd'cl's WACC in two ways, using CAPM and CDGM and determine if they should take the project

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