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Abbott Laboratories (ABT) engages in the discovery, development, manufacture, and sale of a line of health care and pharmaceutical products. Below you will find selected information from Value Line. Use the Value Line estimated 2012 figures as the actual year-end figures for the company. The beta reported was .6 and the risk-free rate was 4.05 percent. Assume a market risk premium of 6 percent The high and low share price each year were: 2008 2009 2010 2011 2012 High $ 54 $ 69.9 $ 61.5 $ 69.1 $ 57.4 Low 42.5 57.7 38.8 45.8 41.3 Using the P/E, P/CF, and P/S ratios, estimate the 2013 share price for Abbott Laboratories. Use the average stock price each year to calculate the price ratios. (Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the "$" sign in your response.) Price ratio P/E $ P/CF $ P/S $

2008 2009 2010 2011 2012 2013 VALUE LINE PUB. LLC 16-17 19.40 19.82 22.73 24.74 25,65 21.05 Sales per sh 33.05 432 5.09 5.90 6.61 6.60 7.30 "Cash Flow" per sh 8.50 3.03 3.72 4.17 4.66 5.00 5.35 Earnings per sh A 6.50 1.44 1.60 1.76 1.88 2.04 216 Div'ds Decl'd per sh . 2.40 85 .70 .66 .85 .75 Cap'l Spending per sh .90 11:48 14.73 14.47 15.58 17.05 18.25 Book Value per shC 22.25 152241551.91547.0 1570.41570.01560.0 Common Shs Outstg 7550.0 48.3 13.0 12.2 12.2 Bold figures are Avg Ann' PIE Ratio 15.0 1.10 87 .78 .79 Value Line Relative PIE Ratio 1.00 26% 3.3% 3.5% 3.5% estimates Avg Ann'l Div'd Yield 2.6% 2962830765 35167 38851 40250 42850 Sales (Smill] 51200 25.5% 28.8% 30.3% 31.2% 31.8% 31.8% 31.5% Operating Margin 31.0% 1838 8 208932624.3 3043.9 3100 3050 Depreciation (Smill) 3150 47342 580526601.17331.0 7880 8350 Net Profit (Smill) 10050 19.2% 17.0% 150% 15.0% 95.0% 15.5% 16.0% Income Tax Rate 17.0% 16.0% 18.9% 18.5% 18.9% 19.6% 19.5% Net Profit Margin 19.6% 5450.7 10264 5055.18288.5 7800 7900 Working Cap' (Smill) 9500 8713.3 11266 12524 12010 11500 10800 Long-Term Debt (Smill) 9000 17480 22858 22388 24440 26750 28500 Shr. Equity Smill) 34500 18.8% 17.5% 19.1% 20.5% 19.0% 19.5% Return on Total Cap'l 23.0% 27.1% 25,4% 29.0% 30.0% 29.5% 29.5% Return on Shr. Equity 29.0% 14.6% 14.8% 17.1% 78.0% 17.5% 18.0% Retained to Com Eq 18.0% 46% 42% 41% 40% 40% 38% All Div'ds to Net Prof 37% 2008 2009 2010 2011 2012 2013 VALUE LINE PUB. LLC 16-17 19.40 19.82 22.73 24.74 25,65 21.05 Sales per sh 33.05 432 5.09 5.90 6.61 6.60 7.30 "Cash Flow" per sh 8.50 3.03 3.72 4.17 4.66 5.00 5.35 Earnings per sh A 6.50 1.44 1.60 1.76 1.88 2.04 216 Div'ds Decl'd per sh . 2.40 85 .70 .66 .85 .75 Cap'l Spending per sh .90 11:48 14.73 14.47 15.58 17.05 18.25 Book Value per shC 22.25 152241551.91547.0 1570.41570.01560.0 Common Shs Outstg 7550.0 48.3 13.0 12.2 12.2 Bold figures are Avg Ann' PIE Ratio 15.0 1.10 87 .78 .79 Value Line Relative PIE Ratio 1.00 26% 3.3% 3.5% 3.5% estimates Avg Ann'l Div'd Yield 2.6% 2962830765 35167 38851 40250 42850 Sales (Smill] 51200 25.5% 28.8% 30.3% 31.2% 31.8% 31.8% 31.5% Operating Margin 31.0% 1838 8 208932624.3 3043.9 3100 3050 Depreciation (Smill) 3150 47342 580526601.17331.0 7880 8350 Net Profit (Smill) 10050 19.2% 17.0% 150% 15.0% 95.0% 15.5% 16.0% Income Tax Rate 17.0% 16.0% 18.9% 18.5% 18.9% 19.6% 19.5% Net Profit Margin 19.6% 5450.7 10264 5055.18288.5 7800 7900 Working Cap' (Smill) 9500 8713.3 11266 12524 12010 11500 10800 Long-Term Debt (Smill) 9000 17480 22858 22388 24440 26750 28500 Shr. Equity Smill) 34500 18.8% 17.5% 19.1% 20.5% 19.0% 19.5% Return on Total Cap'l 23.0% 27.1% 25,4% 29.0% 30.0% 29.5% 29.5% Return on Shr. Equity 29.0% 14.6% 14.8% 17.1% 78.0% 17.5% 18.0% Retained to Com Eq 18.0% 46% 42% 41% 40% 40% 38% All Div'ds to Net Prof 37%

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