1. Abbott Laboratories (ABT) just a paid a dividend of $1.88. Analysts expect dividends to grow at 11% per year for the next five years. Assuming a discount rate of 8% and a perpetual growth rate of 3% after five years, estimate the price per share of Abbott Laboratories
2. What perpetuity growth rate is needed to justify the current share price of $102.65?

Answer rating: 100% (QA)

To estimate the price per share of Abbott Laboratories using the dividend discount model we can use ... View the full answer