Hi there,

I am needing some last minute help with this mini case, All questions must be answered 1-6 if possible. Let me know if this works, thank you so much!

\fCHAPTER 9 Stock Valuation I. 30| Karissa has asked Dan to determine a value per share of Ragan stock. To accomplish this, Dan has gathered the following information about some of Ragan's competitors that are publicly traded: EPS DPS ROE Stock Price \"hm Rtbb-and Motors Corp. $ i .09 $.19 $ l 6.32 l0.00% l2.00% Ben Voyage Marine, lnc. I26 .55 [3.94 l2.00 l7.00 Narnilus Marine Engines (.27) __2_3_.'ZZ 0 N/A I600 industry average $75" $.44 s l 8.08 l l.00% 15.00% Nautilus Marine Engines's negative earnings per share (EPS) were the result of an accounting Write-off last year. Without the write-off, EPS for the company would have been $2.07. Last year, Ragan had an EPS of $5.35 and paid a dividend to Carrington and Genevieve of $320,000 each. The company also had a return on equity of 21 percent. Larissa tells Dan that a required " mm for Ragan of 18 percent is appropriate. E. Assuming the company continues its current growth rate, what is the value per share of _ the company's stock? ' has examined the company's nancial statements, as well as examining those of its titers. Although Ragan currently has a technological advantage, Dan's research _, t that Ragan's competitors are investigating other methods to improve efciency. ' this, Dan believes that Ragan's technological advantage will last only for the next gears. After that period, the company's growth will likely slow to the industry aver ' 'tixmally, Dan believes that the required return the company uses 18 top hlgh. He the industry average required return is more appropnate. Under Dan s assump- 15 the estimated stock price? s growth rate declines to the industry average after ve years. What : value is attributable to growth opportunities? th rate slows to the industry average in ve years. What future _ not sure if they should sell the company. -If they do not sell _- gtYachtS. they would like to try and increase the value , may want to retain control of the company and do i H 3stars. They also feel that the company s debt IS at a ' . ake to try hem . 0 more money. What steps can they t . gm . any conditions under which this strategy