What is the value of jnj stock using the perpetual

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Go to finance.yahoo and find the following information: the beta, the most recent annual dividend, and analysts estimates growth rate for Johnson & Johnson (JNJ). Next, find the three month Treasury bill yield on finance.yahoo.com. Assuming the market risk premium is 9% what is the required return for JNJ? What is the value of JNJ stock using the perpetual dividend growth model? Does JNJ appear overpriced, underpriced, or correctly priced? Why might this analysis be inappropriate or at lest misleading?

Reference no: EM13257031

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