Question
Abbott Laboratories (ABT) just a paid a dividend of $1.88. Analysts expect dividends to grow at 11% per year for the next five years. Assuming
- Abbott Laboratories (ABT) just a paid a dividend of $1.88. Analysts expect dividends to grow at 11% per year for the next five years. Assuming a discount rate of 8% and a perpetual growth rate of 3% after five years, estimate the price per share of Abbott Laboratories
- What perpetuity growth rate is needed to justify the current share price of $102.65?
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