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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

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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.6 and the risk-free rate was 3.21 percent. Assume a market risk premium of 6 percent. The high and low share price each year were: 1. What is the sustainable growth rate and required return for Abbott Laboratories? 2. Using these values, calculate the 2013 share price of Abbott Laboratories stock according to the constant dividend growth model

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