Explore BrainMass

Explore BrainMass

    Johnson & Johnson: Financial Ratios Analysis

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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)


    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.

    © BrainMass Inc. brainmass.com June 3, 2020, 9:40 pm ad1c9bdddf

    Solution Summary

    This question deals with review of the financial management policies and practices of Johnson and Johnson over the past two years. Also it calculates the important financial ratios including profitability, net profit ratios, ROE, debt ratio, acid ratio, current ratio, quick ratio, cash ratio, average collection days, earning per share, EBIT, cost of capital, EACC.