Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 3.49 percent. Assume a market risk premium of 7 percent. |
The high and low share price each year were: |
2008 | 2009 | 2010 | 2011 | 2012 | ||||||
High | $ | 34 | $ | 61.9 | $ | 60.7 | $ | 65.9 | $ | 57.4 |
Low | 22.5 | 53.5 | 42.8 | 45.8 | 42.9 | |||||
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 | $ |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started