^{Johnson & Johnson (JNJ) has a current dividend of $3.36. Estimate the value of JNJ using the H- model. Assume that the initial dividend growth rate is 8%, the dividend will decline linearly over the next ten years to a long-term growth rate of 4%. The required return for JNJ is 6.8%. JNJs current stock price is $137.00. Estimate the current value of JNJ using the H-model.}

^{If your assumptions about future dividends are correct and you purchase JNJ for its current market price, what rate of return would you make on your JNJ stock?}