What should the price of abbot stock be

Reference no: EM13281795

The last dividend paid by Abbot Labs was $1.00. Abbot's growth rate is expected to be a constant 8% for three years, after which the growth rate is expected to be 10%. Investors require a return of 16% on stocks like Abbot. What should the price of Abbot's stock be?

Answer

$15.36
$16.36
$17.00
$17.40
$18.40

Reference no: EM13281795

Questions Cloud

Explain why by performing the necessary calculations : Should robert vote in favor of or against the voluntary reorganization? explain why by performing the necessary calculations.

Explain half cell compartments connected by a salt bridge : A standard galvanic cell is constructed with Co2+|Co and Fe2+|Fe half cell compartments connected by a salt bridge. Which of the following statements are correct?Choose all that apply.

How much mortgage would be paid off after the payment : What would the monthly payment, if the person decided to borrow 90% of the cost of the house and 100% of the processing fees?

Determine the electric field at the center of the square : Four charged particles rest at the corners of a square of side a = 0.30 m. Charges 1 through 4 are 10, 20, 30 and 40 µC, Determine the electric field at the center of the square

What should the price of abbot stock be : The last dividend paid by Abbot Labs was $1.00. Abbot's growth rate is expected to be a constant 8% for three years, after which the growth rate is expected to be 10%. Investors require a return of 16% on stocks like Abbot. What should the price o..

Explain reaction will occur when aqueous solutions : how to predict whether a precipitate reaction will occur when aqueous solutions of PbCl2 and (NH4)2S are mixed.

What is the phase constant for the oscillation : A mass of 1.2 kg is attached to a single spring and set into oscillation. The period of the spring oscillation is measured to be 4.80 seconds. What is the phase constant for the oscillation

Explain rate constant of a reaction is the activation energy : The rate constant of a reaction is 2.6*10-3s^-1 at 25 c, and the activation energy is 33.6kJ/mol. What is k at

Find the total energy was lost in the first full oscillation : A block of mass 1.60 kg is connected to a spring of spring constant 149 N/m which is then set into oscillation on a surface with a small coefficient of kinetic friction. find the total energy was lost in the first full oscillation

User Account

All Pages