1 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 8 and the risk-free rate was 3.93 percent. Assume a market risk premlum of 6 percent 10 points 144 118 188 1148 2008 2009 2010 2011 2012 2013 VALUE LINE PUB. LLC 15-17 19.40 19.82 22.73 2174 25.65 21.05 Sales persh 33.05 432 509 590 361 6.60 7.30 Cash Flowpersh 8.50 303 372 4.17 466 5.00 5.35 Earnings per sh 6.50 2.04 2.16 DWds Deeld per she 2.40 85 .70 68 95 85 .75 Cap'l Spending persh 90 14.73 1447 1556 17.05 18.25 Book Value per she 22.25 152241551.815470 1570.41570.0 7580.0 Common Shs Outst'g 1550.0 183 130 122 122 Bold free ore Avg Ann' PE Ratio 15.0 1.10 .87 .78 .79 We ne Relative PE Ratio 1.00 27% 33% 35% 35% Bates Avg Ann'l Did Yield 2962830745 361673865140250 49350 Sales Smill 51200 255 28.8% 303 31.25 31.8% 31.5 Operating Margin 31.0% 16388 20932124330439 3100 3050 Depreciation (Smill 3150 47342 590625011 73310 7880 8.30 Net Profit Smill) 10050 192% 70% 150% 15.0% 15.5% 16.6% Income Tax Rate 17.00 16.0% 18.9% 18.5% 18.2% 19.6% 19.5% Net Profit Margin 19.65 5450.7 10265055.1 82985 7800 7900 Working Capill 9500 8713311286 1252412040 11500 10800 Long-Term Debt Smil) 9000 17480 22456 2238924440 26750 28500 Shr. Equit Smill) 34500 18.8% 17.5% 19.1% 20.5% 19.0 19.5% Return on Total Capi 27.1% 2545 290% 30.129.5% 29. Return on Shr. Equity 29.09 140% 1485 1715 18.04 175% 78.76 Retained to Com Eq 18.0% HEN 41% 40% 40% 396 All Divds to Net Prof 37% The high and low share price each year were: 2008 2009 2010 2011 2012 High $ 32 $ 51.9 $59.7 $61.9 $ 574 Low 22 39.7 47.8 45.8 44.9 Using the P/E, P/CF, and P/S ratios, estimate the 2013 share price for Abbott Laboratories. Use the average stock price each year to calculate the price ratios. (Do not round Intermediate calculations. Round your answers to 2 decimal places. Omlt the "$" sign In your response.) Price ratio P/E $ 51.20 P/CF $ 40.75 P/S $ 54.92