Firm Valuation: Cash Flow Forecast for Johnson & Johnson submit in excel spreadsheet
Firm Valuation on Johnson & Johnson: Cash flow forecast and terminal value calculation (submit as Excel
Forecast the income statement, balance sheet, and free cash flows generated by the company over a
five-year period, calculate the terminal value at year 5, calculate the appropriate risk-adjusted discount
rate, and use discounted cash flow techniques to value the firm. The first step of the project ? free cash
flow forecast and terminal value calculation is due at the end of this session. Since we have not yet calculated our company?s WACC yet, for the terminal value calculation just use
10% as your temporary WACC. In Phase 3, replace this temporary value with your real WACC as
calculated in Phase 2.