HW DUE WEDNESDAY, APRIL 4

PART I: JNJ

th

1. Prepare FSA2 for JNJ, and hand it in. You may skip the optional part and the rest of the spreadsheet. Assume that the company has no secondary enterprise activities. 2. Explain what the Other Expense, $2,743 (mill.) is about. Also look at the two previous years. To what extent are we dealing with non-recurring items? To address these issues you need to go to the 10-K report itself, sec.gov. In answering the question there is no need to be lengthy. Can you come up with an after tax amount for the 2,743? 3. Can you come up with an after tax amount for the 2011 Restructuring expense? a. 4. What is your best estimate of the future enterprise profit margin, after tax, as you go forward? Justify your number using a few sentences. (NB: there is correct answer per se; but you have to come up with a reasonable number on the basis of the metrics provided in FSA2.) 5. Redo VAL1, changing the forecasted profit margins but keeping the remaining input. Hand in the new VAL1 spreadsheet. 6. Is your forecasted PM more or less (or about the same) optimistic than the analysts forecast? Show you computations estimating what analysts believe will be the PM for 2012. PART II: PVH 1. Prepare as best as you can FSA2 for PVH. Skip the optional part and the rest. Hand in the spreadsheet. 2. Discuss any judgments/interpretations you feel you had to make. As always, try to be succinct. a. Balance sheet investment in other companies?