Founded in $1886$ and headquartered in New Brunswick, New Jersey, Johnson & Johnson $($NYSE: JNJ$)$ is a

multinational pharmaceutical, medical devices, and consumer packaged goods manufacturer. Johnson &

Johnson manufactures, markets or distributes more than $172$ drugs in the United States, including brands

such as Tylenol, Zyrtec, Motrin, and Sudafed. The company's pharmaceutical segment focuses on

immunology, neuroscience, infectious disease, and oncology.

How much are you willing to pay if you estimate that growth in residual earnings after $2020$ will be at the

GDP growth rate of $1\mathrm{.}8\%?$

The risk$-$free rate at the time was about $1\mathrm{.}65\%,$ Beta was $0\mathrm{.}73,$ and you require a $6\%$ risk premium for

investing in this stock. Use the residual earnings model with attached information for the valuation.