Approximately 19% of the short-term liabilities in the form of notes payable and other short-term debt.

The long-term liabilities consist of long-term debt and other miscellaneous liabilities. The debt portion of this represents approximately 39% of the total long-term liabilities. Johnson & Johnson has issued notes onto the market that mature in 2017, comprising the bulk of the long-term debt.

The calculate the market value capital structure of JNJ, we need to find estimates of the market value for their long-term liabilities and their equity. For short-term liabilities, we will assume that because the maturity is under one year, the market value and the book value will be sufficiently similar to one another.

As of market close on Friday August 1, 2008, Johnson & Johnson had 2818.19 million shares outstanding. The price of their stock was $68.61. This gives them a market capitalization for their equity of $191,918.91 million.

The...
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