Refer to the information in P12-29 to answer the following requirements.

\section*{Required}

a. Estimate the value of a share of Abbott Laboratories common stock using the residual operating income (ROPI) model as of December 31, 2007.

h. Abbott Laboratories stock closed at \(\$ 56.18\) on January 31, 2008. How does your valuation estimate compare with this closing price? What do you believe are some reasons for the difference? What investment position is suggested from your results?