Since we just estimated that the book value will grow at 12.1% annually, let’s determine what the book value of JNJ will be in the year 2022. To calculate this problem, you’ll simply use the following equation: FV = PV (1+i)^n FV = Future Book Value PV = Present Book Value (or Current Book Value) i = Book Value Growth Rate n = Number of years into the future Therefore when we substitute our terms, we get the following: FV = $20.95 (1 + .121) ^ 10 FV = $65.65
