1. Assuming the company continues its current growth rate, what is the value per share of the company's stock?

2. Dan has examined the company's financial statements, as well as examining those of its competitors. Although Ragan currently has a technological advantage, Dan's research indicates that Ragan's competitors are investigating other methods to improve efficiency. Given this, Dan believes that Ragan's technological advantage will only last for 5 years. After that period, the company's growth will likely slow. Additionally, Dan believes that the required return the company uses is too high. He believes the industry average required return is more appropriate. Under Dan's assumptions, what is the estimated stock price?

3. What is the industry average price earnings ratio? What is Ragan's price earnings ratio? Comment on any differences.

4. Assume the company's growth rate slows to the industry average in five years. What future return on equity does this imply?

5. Carrington and Genevieve are not sure if they should sell the company. If they do not sell the company outright to East Coast Yachts, they would like to try and increase the value of the stock. They want to retain control and do not want to sell stock to outside investors. They also feel that they company's debt is at a manageable level and do not want to borrow more money. What steps can they take to try and increase the stock price? Are there any conditions under which this strategy would not increase the stock price?

	EPS	DPS	Stock Price	ROE	R
Blue Ribband Motors Corp	1.13	0.35	18.25	11.00%	14.00%
Bon Voyage Marine, Inc.	1.41	0.43	15.31	14.00	17.00
Nautilus Marine Engines	-.23	.61	28.72	NA	13.00
Industry Average	.77	.46	20.76	12.5%	14.67%