assuming the company continues its current growth rate what is the value per share of the company stock

s/Business%20Case%202%20(1).pdf PDFescape - Accou... Paycheck Manager Diploma Templates Learn Infant Develo... Ragan, Inc., was founded nine years ago by brother and sister Carrington and Genevieve Ragan. The company manufactures and installs commercial heating, ventilation, and cooling HVAC) units. Ragan, Inc., has experienced rapid growth because of a proprietary technology that increases the energy efficiency of its units. The company is equally owned by Carrington and Genevieve. The original partnership agreement between the siblings gave each 50.000 shares of stock. In the event ether wished to sell stock, the shares first had to be offered to the other at a discounted price Although neither sibling wants to sell, they have decided they should value their holdings in the company. To get started, they have gathered the following information about their main competitors: Rage - EPS Div. Stock Price ROE Arctic Cooling. Toe $1.30 5.16 $25.4 8 SOS 10.00% National Heating & Cooling 195 2 29.85 10.50 13.00 Expert HVAC Corp 14 9.78 12.00 Industry average 5.96 $.18 $25.77 9.595 11.07 Expert HVAC Corporation's negative earnings per here were the result of an accounting write-off last year. Without the write of earnings per share for the company would have been $110. Last year, Ragan, Inc., had an EPS of $3.15 and paid a dividend to Carrington and Genevieve of $45.000 each. The company also had a return on equity of 17 percent. The siblings believe that 14 percent is an appropriate required return for the company Now respond to the following questions based on the business case you've just read: 1. Assuring the company continues its current growth rate what is the value per share of the company's stock? 2. To verify their calculations. Carrington and Genevieve have hired Josh Schiessman as a consultant Josh was previously an equity analyst and covered the HVAC Industry Josh has examined the company's financial statements, as well as those of its competitors. Although Ragan, Inc. cuttertynas a technological advantage, his research indicates that other companies Investigating methods to improve efficiency. Given this Josh believes that the company's technological advantage willest only for the next five years. After that period, the company's growth widely slow to the industry growth average Additionally, Josh believes that the required retum used by the company is too high He believes the industry average required return more appropriate. Under this growth ate assumption. What is your estimate of the stock price? sa s/Business%20Case%202%20(1).pdf PDFescape - Accou... Paycheck Manager Diploma Templates Learn Infant Develo... Ragan, Inc., was founded nine years ago by brother and sister Carrington and Genevieve Ragan. The company manufactures and installs commercial heating, ventilation, and cooling HVAC) units. Ragan, Inc., has experienced rapid growth because of a proprietary technology that increases the energy efficiency of its units. The company is equally owned by Carrington and Genevieve. The original partnership agreement between the siblings gave each 50.000 shares of stock. In the event ether wished to sell stock, the shares first had to be offered to the other at a discounted price Although neither sibling wants to sell, they have decided they should value their holdings in the company. To get started, they have gathered the following information about their main competitors: Rage - EPS Div. Stock Price ROE Arctic Cooling. Toe $1.30 5.16 $25.4 8 SOS 10.00% National Heating & Cooling 195 2 29.85 10.50 13.00 Expert HVAC Corp 14 9.78 12.00 Industry average 5.96 $.18 $25.77 9.595 11.07 Expert HVAC Corporation's negative earnings per here were the result of an accounting write-off last year. Without the write of earnings per share for the company would have been $110. Last year, Ragan, Inc., had an EPS of $3.15 and paid a dividend to Carrington and Genevieve of $45.000 each. The company also had a return on equity of 17 percent. The siblings believe that 14 percent is an appropriate required return for the company Now respond to the following questions based on the business case you've just read: 1. Assuring the company continues its current growth rate what is the value per share of the company's stock? 2. To verify their calculations. Carrington and Genevieve have hired Josh Schiessman as a consultant Josh was previously an equity analyst and covered the HVAC Industry Josh has examined the company's financial statements, as well as those of its competitors. Although Ragan, Inc. cuttertynas a technological advantage, his research indicates that other companies Investigating methods to improve efficiency. Given this Josh believes that the company's technological advantage willest only for the next five years. After that period, the company's growth widely slow to the industry growth average Additionally, Josh believes that the required retum used by the company is too high He believes the industry average required return more appropriate. Under this growth ate assumption. What is your estimate of the stock price? sa