8-16A. (Common stockhotder expected return) Access the Internet to gather the following informacion for Johnson & Johnson.

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8-16A. (Common stockho"tder expected return) Access the Internet to gather the following informacion for Johnson & Johnson.

a. The earnings per share and dividends per share for the past five years.

b. The common stock price.

Assuming that the annual growth rate in earnings per share for the past four y~ars is a reasonable estimate of the growth in share price for the indefinite future, which it may not be, estimate the expected rate of return for the stock.

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Financial Management Principles And Applications

ISBN: 9780131450653

10th Edition

Authors: Arthur J. Keown, J. William Petty, John D. Martin, Jr. Scott, David F.

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