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 .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: |
2008 | 2009 | 2010 | 2011 | 2012 | ||||||
High | $ | 78 | $ | 57.9 | $ | 60.3 | $ | 64.3 | $ | 57.4 |
Low | 66.5 | 45.7 | 44.8 | 45.8 | 43.7 | |||||
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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