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 4.05 percent. Assume a market risk premium of 6 percent.

The high and low share price each year were:

		2008		2009		2010		2011		2012
High	$	54	$	69.9	$	61.5	$	69.1	$	57.4
Low		42.5		57.7		38.8		45.8		41.3

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.

2008 2009 2010 2011 2012 2013 VALUE LINE PUB. LLC 15-17 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 sh 6.50 1.44 1.60 1.76 1.88 204 216 Divids Decl'd per shu 2.40 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 15224 1551.91547.0 1570.41570.01560.0 Common Shs Outst'g 1550.0 18.3 1310 12.2 12.2 Bold figures are Avg Ann'I PE Ratio 15.0 1.10 .87 .78 .79 Value Line Relative PE Ratio 1.00 2.6% 33% 35% 3.5% estrates Avg Ann'l Div'd Yield 2.6% 29628 3076535167 38851 4025042850 Sales (Smill 51200 25.5% 28.8% 30.3% 31.2% % 31.8% 31.8% 31.5% Operating Margin 31.0% 1838 8 2089.3262433043.9 3100 3050 Depreciation (Smil) 3150 47342 580526501.17331.0 7880 8350 Net Profit Smill) 10050 192% 17 0% 150% 15.0% 15.5% 15.5% 16.0% Income Tax Rate 17.0% 16.0% 18.9% 18.5% 18.9% 19.6% 19.6% 19.5% Net Profit Margin 19.6% 5450.7 10284 5055.1 8288.5 7800 7900 Working Cap' (Smill) 9500 87133 112661252412040 11500 10800 Long-Term Debt (Smil) 9000 17480 22856 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% 0.0% 29.5% 29.5% Return on Shr. Equity 29.0% 14.6% 148% 17.1% 18.0% 17.5% 17.5% 18.0% Retained to Com Eq 18.0% 46% 42% 41% 40% 40% 38% All Div ds to Net Prof 37% 2008 2009 2010 2011 2012 2013 VALUE LINE PUB. LLC 15-17 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 sh 6.50 1.44 1.60 1.76 1.88 204 216 Divids Decl'd per shu 2.40 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 15224 1551.91547.0 1570.41570.01560.0 Common Shs Outst'g 1550.0 18.3 1310 12.2 12.2 Bold figures are Avg Ann'I PE Ratio 15.0 1.10 .87 .78 .79 Value Line Relative PE Ratio 1.00 2.6% 33% 35% 3.5% estrates Avg Ann'l Div'd Yield 2.6% 29628 3076535167 38851 4025042850 Sales (Smill 51200 25.5% 28.8% 30.3% 31.2% % 31.8% 31.8% 31.5% Operating Margin 31.0% 1838 8 2089.3262433043.9 3100 3050 Depreciation (Smil) 3150 47342 580526501.17331.0 7880 8350 Net Profit Smill) 10050 192% 17 0% 150% 15.0% 15.5% 15.5% 16.0% Income Tax Rate 17.0% 16.0% 18.9% 18.5% 18.9% 19.6% 19.6% 19.5% Net Profit Margin 19.6% 5450.7 10284 5055.1 8288.5 7800 7900 Working Cap' (Smill) 9500 87133 112661252412040 11500 10800 Long-Term Debt (Smil) 9000 17480 22856 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% 0.0% 29.5% 29.5% Return on Shr. Equity 29.0% 14.6% 148% 17.1% 18.0% 17.5% 17.5% 18.0% Retained to Com Eq 18.0% 46% 42% 41% 40% 40% 38% All Div ds to Net Prof 37%