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Can you help me understand questions 1 and 2 at the bottom? Question 1 what is the value per share of the company's stock? Question
Can you help me understand questions and at the bottom? Question "what is the value per share of the company's stock?" Question "what is your estimate of the stock prcie?"QUESTIONS
Assuming the company continues its current
growth rate, what is the value per share of the
company's stock?
To verify their calculations, Carrington and Gene
vieve have hired Josh Schlessman as a consultant.
Josh was previously an equity analyst and cov
ered the HVAC industry. Josh has examined the
company's financlal statements, as well as those
of its competitors. Although Ragan, Inc., cur
rently has a technological advantage, his re
search indicates that other companies are
investigating methods to improve efficiency.
Given this, Josh believes that the company's
technological advantage will last only for the
next five years, After that period, the company's
growth will likely slow to the industry growth av
erage. Additionally, Josh belleves that the re
quired return used by the company is too high.
He believes the industry average required re
turn is more appropriate. Under this growth rate
assumption, what is your estimate of the stock
price?
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