ASHFORD BUS 405 Week 2 Assignment Abbott Laboratories Problem/ Tutorialrank
For more course tutorials visit www.tutorialrank.com Tutorial Purchased: 4 Times, Rating: A Abbott Laboratories Problem. After reading the Value Line figures and information on Abbott Laboratories in the Questions and Problems section of Chapter 6 (just before Problem 27), complete Problems 27, 28, 29, 30, and 31 and submit to your instructor. Show your calculations and in your response to problem 31 write a 100 to 200 word defense of your position as to the value of Abbott Laboratories stock at its current price of $50 per share. 27. What is the sustainable growth rate and required return for Abbott Laboratories? Using these values, calculate the 2010 share price of Abbott Laboratories Industries stock according to the constant dividend growth model. 28. Using the P/E, P/CF, and P/S ratios, estimate the 2010 share price for Abbott Laboratories. Use the average stock price each year to calculate the price ratios.
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Abbott Laboratories Problem. After reading the Value Line figures and information on Abbott Laboratories in the Questions and Problems section of Chapter 6 (just before Problem 27), complete Problems 27, 28, 29, 30, and 31 and submit to your instructor. Show your calculations and in your response to problem 31 write a 100 to 200 word defense of your position as to the value of Abbott Laboratories stock at its current price of $50 per share.
27. What is the sustainable growth rate and required return for Abbott Laboratories? Using these values, calculate the 2010 share price of Abbott Laboratories Industries stock according to the constant dividend growth model.
28. Using the P/E, P/CF, and P/S ratios, estimate the 2010 share price for Abbott Laboratories. Use the average stock price each year to calculate the price ratios.
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<strong>ASHFORD</strong> <strong>BUS</strong> <strong>405</strong> <strong>Week</strong> 2 <strong>Assignment</strong> <strong>Abbott</strong><br />
<strong>Laboratories</strong> <strong>Problem</strong><br />
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<strong>Abbott</strong> <strong>Laboratories</strong> <strong>Problem</strong>. After reading the Value Line figures<br />
and information on <strong>Abbott</strong> <strong>Laboratories</strong> in the Questions and<br />
<strong>Problem</strong>s section of Chapter 6 (just before <strong>Problem</strong> 27), complete<br />
<strong>Problem</strong>s 27, 28, 29, 30, and 31 and submit to your instructor. Show<br />
your calculations and in your response to problem 31 write a 100 to<br />
200 word defense of your position as to the value of <strong>Abbott</strong><br />
<strong>Laboratories</strong> stock at its current price of $50 per share.<br />
27. What is the sustainable growth rate and required return for <strong>Abbott</strong><br />
<strong>Laboratories</strong>? Using these values, calculate the 2010 share price of<br />
<strong>Abbott</strong> <strong>Laboratories</strong> Industries stock according to the constant<br />
dividend growth model.<br />
28. Using the P/E, P/CF, and P/S ratios, estimate the 2010 share price<br />
for <strong>Abbott</strong> <strong>Laboratories</strong>. Use the average stock price each year to<br />
calculate the price ratios.<br />
29. Assume the sustainable growth rate and required return you<br />
calculated in <strong>Problem</strong> 27 are valid. Use the clean surplus relationship<br />
to calculate the share price for <strong>Abbott</strong> <strong>Laboratories</strong> with the residual<br />
income model.
30. Use the information from the previous problem and calculate the<br />
stock price with the clean surplus dividend. Do you get the same stock<br />
price as in the previous problem? Why or why not?<br />
31. Given your answers in the previous questions, do you feel <strong>Abbott</strong><br />
<strong>Laboratories</strong> is overvalued or undervalued at its current price of<br />
around $50? At what price do you feel the stock should sell?
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