estimate of the stock price?

Happy. hc. was funded g years ago by siblings Brandon and Rachael Happy. The company manufactures and instans cornmercial heating, ventilation, and cooling (HVAC) units. Happy, Inc. experienced rapid groi4th because of a proprietary 4 technologytiat increases the energy efficiency of its units. The company is equalb' owned by Brandon and Rachael-The origind partnership agreement bOteen the siblings gave each 50,000 shares of stock In the event either to sell stock, the shares first had to be offered to the other at a discounted price. Although neither sibling wants to sell, they had decided they shouldvalue their holdings in the company. To get started. they have gathered the folloving information about their main compejtors: 6 7 8 9 11 Co etor A Com 130 $ 195 $ (0 37) $ 016 $ 023 $ 014 $ 25 34 29 85 22 13 8.50% 10 g.7B% 1000% 1300% 12 Cornpetitor Cs negative earnings per share were the result of an accounting vvrite-off last year. Without the write-off. rr share for company would have been $1 .10, 13 Lastyear. Happy. Inc. had an EPS of $3.15 and paid a dividend to Brandon and Rachael of $45,000 each. The a return on eq1St of 17 percent. The siblings believe that 14 percent is an appropriate required return for the cornpany_ 1 company' contnues its current grovffl rate, is the value per share Of company's stock? 17 2 To yerfy teir calculations, Brandon and Rachael hired ABC Consultants, an equity anaysts that covers the HVAC ZC has exanned the companys financial statements as well as those of its competitors Although Happy. Inc. currertbt has advartage. thetr research indicates that other companies are investigating methods to efficiency Givenm 18 companys technological advantage will last only for the next five years. After thatperbd.thecon's w" gety to indusoy growth average. AEC believes that the required retum used by the company too hi#. ABC believes the industry average return is more approrpriate. under this yonth rate assumption. is the price? 21 24 27 Complete the boxes in yellow high"ghted area to answer tve two questions. Here are some basie facts to get you starte&. Ges wmed by each sibling nd tc each sibling ROE reqnred return AS .coc is provided to help you complete this assignment outputareasto answer QI. Do nothdcode 33 34 share stwe year Queso m I VAu. per share 47 2 3 4 57 hint: EPS x shares h's is the of earrwu.s rd pad retent,on rato x ROE Q2. Do nothard eode above to hint: C, use the EPS growth Compary rate Dorrp&ry grcMh rete Cornpery rate gc0Mh Compony growth rate iNWS TRY above to