This paper concentrates on the primary theme of Johnson & Johnson one of the world’s largest manufacturers of health care in which you have to explain and evaluate its intricate aspects in detail. In addition to this, this paper has been reviewed and purchased by most of the students hence; it has been rated 4.8 points on the scale of 5 points. Besides, the price of this paper starts from £ 79. For more details and full access to the paper, please refer to the site.
Johnson & Johnson one of the world’s largest manufacturers of health care products. The company’s December 31, 2013, financial statements included the following information in the long-term debt disclosure note:The bonds were issued at the beginning of 2000. The disclosure note stated that the effective interest rate for these bonds is 3% annually. Some of the original convertible bonds have been converted into Johnson & Johnson shares of stock. The $179 million is the present value of the bonds not converted and thus reported in the financial statements. Each individual bond has a maturity value (face amount) of $1,000. The maturity value indicates the amount that Johnson & Johnson will pay bondholders at the beginning of 2020. Zero-coupon bonds pay no cash interest during the term to maturity. The company is “accreting” (gradually increasing) the issue price to maturity value using the bonds’ effective interest rate computed on a semiannual basis.Required: