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CAN YOU PLEASE SHOW YOUR WORK Abbott Laboratories (ABT) engages in the discovery

ID: 2641299 • Letter: C

Question

CAN YOU PLEASE SHOW YOUR WORK

Abbott Laboratories (ABT) engages in the discovery, development, manufacture, and sale of a line of health care and pharmaceutical products. Below you will find selected information from Value Line. Use the Value Line estimated 2012 figures as the actual year-end figures for the company. The beta reported was .70 and the risk-free rate was 3.28 percent. Assume a market risk premium of 7 percent.

               

       

        

The sustainable growth rate is 17.46 percent, and the required return is 8.18 percent. Use the clean surplus relationship to calculate the share price for Abbott Laboratories with the residual income model.(Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)

PLEASE SHOW YOUR WORK

   

CAN YOU PLEASE SHOW YOUR WORK

Abbott Laboratories (ABT) engages in the discovery, development, manufacture, and sale of a line of health care and pharmaceutical products. Below you will find selected information from Value Line. Use the Value Line estimated 2012 figures as the actual year-end figures for the company. The beta reported was .70 and the risk-free rate was 3.28 percent. Assume a market risk premium of 7 percent.

Explanation / Answer

  Share price 125.25$

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