Question
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
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 .9 and the risk-free rate was 3.70 percent. Assume a market risk premium of 7 percent. The high and low share price each year were: 2008 2009 2010 2011 2012 High $ 53 $ 64.9 $ 61.0 $ 67.1 $ 57.4 Low 40.8 53.4 41.3 45.8 42.3 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. Omit the "$" sign in your response.) Price ratio P/E $ P/CF $ P/S $
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