Problem:
Calculate the FINANCIAL & MARKET RATIOS for the year ended 31/12/07 & 31/12/06
Critically evaluate and comment on the results - Spotlight the areas the management should focus more
- Calculate k (cost of equity) by applying both the Gordon's Growth Model and the CAPM.
- Calculate the cost of each component of Capital for JNJ and the weighted cost of capital (WACC)
Then
Review the Financial Management policies and practices of JNJ over the past two years. Visit the website of the company.
Critically evaluate the financial management effectiveness of the company by commenting on:
- working capital policies
- dividend policies
- gearing policies
- risk management policies
- investment
Present your own suggestion on what changes you think might improve these principles.