East Coast Yachts wants to make its own engines and to do that they may purchase Ragan Motors Per the Closing Case at the end of Chapter 6, Larissa asked Dan to determine the value per share of Ragan stock in anticipation of acquiring them Turns out that Nautilus Marine Engines had a write off last year Without this write off, the Earnings per Share would have been $2 05 All other data reported in the Closing Case is unchanged, EPS DPS STOCK PRICE ROE R Blue Ribband Motors Corp $1 24 $ 39 $20 10 11 00 14 00 Bon Voyage Marine, Inc 1 55 47 16 85 14 00 17 00 Nautilus Marine Engines 25 67 31 60 N A 13 00 Industry Average $ 85 $ 51 $22 85 12 50 14 67 To determine an accurate estimate of the value of Ragan's stock based on this information, should the actual EPS with the write off be used or the EPS without the write off Assume Ragan's growth rate slows to the industry average in five years, and given your answer to the previous question, what future ROE does this imply What does the Ragan PE ratio in comparison with the Industry PE ratio indicate concerning a decision to purchase Ragan by East Coast Is it a good idea or not, and why

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East Coast Yachts wants to make its own engines and to do that they may purchase Ragan Motors. Per the Closing Case at the end

East Coast Yachts wants to make its own engines and to do that they may purchase Ragan Motors. Per the Closing Case at the end of Chapter 6, Larissa asked Dan to determine the value per share of Ragan stock in anticipation of acquiring them. Turns out that Nautilus Marine Engines had a write off last year. Without this write off, the Earnings per Share would have been $2.05. All other data reported in the Closing Case is unchanged,

	EPS	DPS	STOCK PRICE	ROE	R
Blue Ribband Motors Corp	$1.24	$.39	$20.10	11.00%	14.00%
Bon Voyage Marine, Inc.	1.55	.47	16.85	14.00	17.00
Nautilus Marine Engines	-.25	.67	31.60	N/A	13.00
Industry Average	$.85	$.51	$22.85	12.50%	14.67%

To determine an accurate estimate of the value of Ragan's stock based on this information, should the actual EPS with the write off be used or the EPS without the write off?

Assume Ragan's growth rate slows to the industry average in five years, and given your answer to the previous question, what future ROE does this imply?

What does the Ragan PE ratio in comparison with the Industry PE ratio indicate concerning a decision to purchase Ragan by East Coast? Is it a good idea or not, and why?