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 3.98 percent. Assume a market risk premium of 5 percent. 1.76 240 2008 2009 2010 2011 2012 2013 VALUE LINE PUB. LLC 16-17 19.40 19.82 22.73 24.74 25.65 21.05 Sales per sh 33.05 432 5.09 5.90 6.61 6.60 7.30 "Cash Flow per sh 8.50 303 3.72 4.17 4.66 5.00 5.35 Earnings per shA 6.50 1.44 1.60 1.88 2.04 216 Div'ds Decl'd per sh .85 .70 .66 .95 .85 .75 Cap'l Spending per sh .90 11.48 14.73 14.47 15.56 17.05 18.25 Book Value per shC 22.25 152241551.91547.0 1570.41570.01560.0 Common Shs Outstg 1550.0 18.3 13.0 12.2 12.2 Bold figures are Avg Ann'IPE Ratio 15.0 1.10 .87 .78 .79 Value Line Relative P/E Ratio 1.00 26% 33% 35% 3.5% estimates Avg Ann'l Div'd Yield 26% 29628 3076535167 38851 40250 42850 Sales Smill 51200 25.5% 28.8% 30.3% 31.2% 31.8% 31.5% Operating Margin 31.0% 1838 8 20893 26243 3043.9 3100 3050 Depreciation (Smill) 3150 47342580526601.17331.0 7880 8350 Net Profit Smill) 10050 19.2% 17.0% 15.0% 15.0% 15.5% 16.0% Income Tax Rate 17.0% 16.0% 18.9% 18.5% 18.9% 19.6% 19.5% Net Profit Margin 19.6% 5450,7 102645055.18288.5 7800 7900 Working Cap' (Smill) 9500 8713.3 11266 12524 12010 11500 10800 Long-Term Debt (Smill) 9000 17480 22856 22388 24440 26750 28500 Shr. Equity Smill) 34500 18.8% 17.5% 19.1% 20.5% 19.0% 19.5% Return on Total Cap'l 23.0% 27.1% 25,4% 29.0% 30.0% 29.5% 29.5% Return on Shr. Equity 29.0% 14.6% 148% 17.1% 18.0% 17.5% 18.0% Retained to Com Eq 18.0% 46% 42% 41% 40% 40% 38% All Div ds to Net Prof 37% The high and low share price each year were: High Low 2008 2009 2010 2011 2012 $ 64 $ 68.9 $ 61.4 $68.7 $ 57.4 51.8 58.9 39.3 45.8 41.5 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.) 14.02 Price ratio P/E P/CF P/S A A A 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 3.98 percent. Assume a market risk premium of 5 percent. 1.76 240 2008 2009 2010 2011 2012 2013 VALUE LINE PUB. LLC 16-17 19.40 19.82 22.73 24.74 25.65 21.05 Sales per sh 33.05 432 5.09 5.90 6.61 6.60 7.30 "Cash Flow per sh 8.50 303 3.72 4.17 4.66 5.00 5.35 Earnings per shA 6.50 1.44 1.60 1.88 2.04 216 Div'ds Decl'd per sh .85 .70 .66 .95 .85 .75 Cap'l Spending per sh .90 11.48 14.73 14.47 15.56 17.05 18.25 Book Value per shC 22.25 152241551.91547.0 1570.41570.01560.0 Common Shs Outstg 1550.0 18.3 13.0 12.2 12.2 Bold figures are Avg Ann'IPE Ratio 15.0 1.10 .87 .78 .79 Value Line Relative P/E Ratio 1.00 26% 33% 35% 3.5% estimates Avg Ann'l Div'd Yield 26% 29628 3076535167 38851 40250 42850 Sales Smill 51200 25.5% 28.8% 30.3% 31.2% 31.8% 31.5% Operating Margin 31.0% 1838 8 20893 26243 3043.9 3100 3050 Depreciation (Smill) 3150 47342580526601.17331.0 7880 8350 Net Profit Smill) 10050 19.2% 17.0% 15.0% 15.0% 15.5% 16.0% Income Tax Rate 17.0% 16.0% 18.9% 18.5% 18.9% 19.6% 19.5% Net Profit Margin 19.6% 5450,7 102645055.18288.5 7800 7900 Working Cap' (Smill) 9500 8713.3 11266 12524 12010 11500 10800 Long-Term Debt (Smill) 9000 17480 22856 22388 24440 26750 28500 Shr. Equity Smill) 34500 18.8% 17.5% 19.1% 20.5% 19.0% 19.5% Return on Total Cap'l 23.0% 27.1% 25,4% 29.0% 30.0% 29.5% 29.5% Return on Shr. Equity 29.0% 14.6% 148% 17.1% 18.0% 17.5% 18.0% Retained to Com Eq 18.0% 46% 42% 41% 40% 40% 38% All Div ds to Net Prof 37% The high and low share price each year were: High Low 2008 2009 2010 2011 2012 $ 64 $ 68.9 $ 61.4 $68.7 $ 57.4 51.8 58.9 39.3 45.8 41.5 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.) 14.02 Price ratio P/E P/CF P/S A A A