Johnson and Johnson Pharmaceuticals (J&J) is expected to earn $2 per share next year. J&J has a
Question:
Johnson and Johnson Pharmaceuticals (J&J) is expected to earn $2 per share next year. J&J has a payout ratio of 40 percent. Earnings and dividends have been growing at a constant rate of 10 percent per year, but analysts are estimating that the growth rate will be 7 percent a year for the indefinite future. Investors require a 15 percent return on J&J. What is its estimated price?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Investments Analysis And Management
ISBN: 9781118975589
13th Edition
Authors: Charles P. Jones, Gerald R. Jensen
Question Posted: