Abbott lab made 280 net income per share last year and paid, Ask an Expert

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Abbott Lab made $2.80 net income per share last year and paid out $1.30 in dividend. The company had a book value (or equity) per share of $20. The market has a risk free rate of 3.1% and market return 11.1%. Abbott has a historical beta of .90.

What’s the company’s ROE?

What’s the sustainable growth rate?

What’s the discount rate using CAPM?

Calculate the stock price for Abbott based on Residual Income Model.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91557346

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