wk 04 discussion question dq debt considerations and price valuation related to kimberly clark

Review Kimberly-Clark’s 2014 Annual Report, Note 8 on Debt. Contrast these 2014 comments and/or totals regarding debt and bonds with the trends and current information found in Morning Star relative to Kimberly-Clark.

Requirement #1: Review the current Morning Star information regarding Kimberly-Clark’s debt and provide your thoughts based on our readings through this week in Ross, Westerfield, and Jaffe (2016).

As of Friday, 09 SEP, Kimberly-Clark (KMB) closed at $122.96 and analysts projected a one-year target of 138.73; with a reported yield of 2.92%. Kimberly-Clark’s dividend is $3.68 (YAHOO! FINANCE).

Requirement #2: Referring to Chapter 9 of Ross, Westerfield, and Jaffe (2016), compute and display your calculations projecting your one-year target price for Kimberly-Clark. Comment on the assumptions you made regarding how you developed your target price projection… does the capital structure or debt discussed in Requirement #1 concern you in recommending this stock to an investor? Why or why not?

References:

Ross, Stephen A., Randolph Westerfield, and Jeffrey F. Jaffe. Corporate Finance. 11th ed. New York: McGraw-Hill, 2016. Print.

 
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