I am looking for help in question 2B and 2C. Displayed below is the full question with my progress thus far. Please show work. Thank you!

You should use the Excel Template provided to answer the five questions in this case. Each question should be answered in its own answer tab included in the template. Please read through each question carefully. Please show your work for each of the problems. Use formulas whenever possible and link numbers to cells within your formulas instead of typing in the numbers. This will allow me to follow your work and thought process, and will reduce the likelihood of errors based on typos. The highlighted areas within each answer key should be completed/contain your answers. If you do not show your work for any part of a question then you will receive a zero for that part of the question. Answers should be rounded to at 3 decimal points and at least 3 significant digits. Background information Anna has been talking with the company's directors about the future of Frentheway Farm Equipment (FFE). The company has been using outside suppliers for various key components of the company's farm equipment, including engines. Anna has decided that FFE should consider the purchase of an engine manufacturer to allow FFE to better integrate its supply chain and get more control over engine features. After investigating several possible companies, Anna feels that the purchase of Mantz Engines Inc (MEI), is a possibility. She has asked Aiden Carney to analyze Mantz's value. Mantz Engines, Inc., is a privately owned company that was founded seven years ago by Sydney and Claire Mantz. The company manufacturers farm engines used primarily in farm equipment. Mantz has experienced rapid growth because of a proprietary technology that increases the fuel efficiency of its engines with very little sacrifice in performance. The company is equally owned by Sydney and Claire Mantz. The original agreement between the siblings gave each 200,000 shares of stock. The Mantz's have not issued any additional stock nor have they sold any of their stock since founding the company. Anna has asked Aiden to determine a value per share of Mantz stock. Aiden has gathered the following |information about engine manufacturing firms that are publicly traded. EPS DPS STOCK PRICE ROE ROA Jensen Motors Corp. Blue Cow Farm Engines Inc. Horrocks Farm Equipment 2$ 3.50 $ 2.00 $ 37.00 12.00% 9.00% 8.00 4.00 90.00 15.00% 11.00% (0.50) 1.00 30.00 16.00% 13.00% Horrocks Farm Equipment's negative earnings per share (EPS) was the result of an accounting write-off last year. Without the write-off, EPS for the company would have been $2.25. Last year, Mantz Engines Inc (MEI) had an EPS of $4.00 and paid a dividend to Sydney and Claire Mantz of $300,000 each. The company also had a return on equity of 16%. Anna tells Aiden that a 14% required rate of return should be used to evaluate the value of 1. Assuming the company continues its current growth rate, what is the value per share of the company's stock? (Do not round intermediate calculations) a. What is the company's total earnings? 1,600,000 Payout Ratio = Retention Ratio = b. What are the company's payout and retention ratios? 37.50% 62.50% c. Using the retention ratio, calculate the company's growth rate. 10.00% d. Now you can value the company using the entire dividend payment. The total value of the company's equity under these assumptions is: 16,500,000 # of shares e. What is the value per share based on your response to part d? 41.25 400,000 1. Assuming the company continues its current growth rate, what is the value per share of the company's stock? (Do not round intermediate calculations) a. What is the company's total earnings? =(200000*2)*4 =(300000*2)/ Payout Ratio = Retention Ratio = b. What are the company's payout and retention ratios? =(1-F9) =(F10*16%) c. Using the retention ratio, calculate the company's growth rate. d. Now you can value the company using the entire dividend payment. The total value of the company's equity under these assumptions is: =(600000*(1+ # of shares =(F21/G28) e. What is the value per share based on your response to part d? 400,000 2. Aiden has examined the company's financial statements, as well as examining those of its competitors. Although Mantz currently has a technological advantage, Aiden's research indicates that Mantz's competitors are investigating other methods to improve efficiency. Given this, Aiden believes that Mantz's technological advantage will last only for the next five years. After that period, the company's growth will likely slow to the industry average. Additionally, Aiden believes the industry average required return is more appropriate. Under Aiden's assumptions, what is the estimated stock price? (Do not round intermediate calculations) a. Calculate the industry's average growth rate. You may need to adjust for nonrecurring events that would impact the industry information 15.64% Average Industry Growth Rate = b. Calculate the Dividends for Mantz for each of the next 6 years c. What is the value of the stock today and what is the value per share? You should use the Excel Template provided to answer the five questions in this case. Each question should be answered in its own answer tab included in the template. Please read through each question carefully. Please show your work for each of the problems. Use formulas whenever possible and link numbers to cells within your formulas instead of typing in the numbers. This will allow me to follow your work and thought process, and will reduce the likelihood of errors based on typos. The highlighted areas within each answer key should be completed/contain your answers. If you do not show your work for any part of a question then you will receive a zero for that part of the question. Answers should be rounded to at 3 decimal points and at least 3 significant digits. Background information Anna has been talking with the company's directors about the future of Frentheway Farm Equipment (FFE). The company has been using outside suppliers for various key components of the company's farm equipment, including engines. Anna has decided that FFE should consider the purchase of an engine manufacturer to allow FFE to better integrate its supply chain and get more control over engine features. After investigating several possible companies, Anna feels that the purchase of Mantz Engines Inc (MEI), is a possibility. She has asked Aiden Carney to analyze Mantz's value. Mantz Engines, Inc., is a privately owned company that was founded seven years ago by Sydney and Claire Mantz. The company manufacturers farm engines used primarily in farm equipment. Mantz has experienced rapid growth because of a proprietary technology that increases the fuel efficiency of its engines with very little sacrifice in performance. The company is equally owned by Sydney and Claire Mantz. The original agreement between the siblings gave each 200,000 shares of stock. The Mantz's have not issued any additional stock nor have they sold any of their stock since founding the company. Anna has asked Aiden to determine a value per share of Mantz stock. Aiden has gathered the following |information about engine manufacturing firms that are publicly traded. EPS DPS STOCK PRICE ROE ROA Jensen Motors Corp. Blue Cow Farm Engines Inc. Horrocks Farm Equipment 2$ 3.50 $ 2.00 $ 37.00 12.00% 9.00% 8.00 4.00 90.00 15.00% 11.00% (0.50) 1.00 30.00 16.00% 13.00% Horrocks Farm Equipment's negative earnings per share (EPS) was the result of an accounting write-off last year. Without the write-off, EPS for the company would have been $2.25. Last year, Mantz Engines Inc (MEI) had an EPS of $4.00 and paid a dividend to Sydney and Claire Mantz of $300,000 each. The company also had a return on equity of 16%. Anna tells Aiden that a 14% required rate of return should be used to evaluate the value of 1. Assuming the company continues its current growth rate, what is the value per share of the company's stock? (Do not round intermediate calculations) a. What is the company's total earnings? 1,600,000 Payout Ratio = Retention Ratio = b. What are the company's payout and retention ratios? 37.50% 62.50% c. Using the retention ratio, calculate the company's growth rate. 10.00% d. Now you can value the company using the entire dividend payment. The total value of the company's equity under these assumptions is: 16,500,000 # of shares e. What is the value per share based on your response to part d? 41.25 400,000 1. Assuming the company continues its current growth rate, what is the value per share of the company's stock? (Do not round intermediate calculations) a. What is the company's total earnings? =(200000*2)*4 =(300000*2)/ Payout Ratio = Retention Ratio = b. What are the company's payout and retention ratios? =(1-F9) =(F10*16%) c. Using the retention ratio, calculate the company's growth rate. d. Now you can value the company using the entire dividend payment. The total value of the company's equity under these assumptions is: =(600000*(1+ # of shares =(F21/G28) e. What is the value per share based on your response to part d? 400,000 2. Aiden has examined the company's financial statements, as well as examining those of its competitors. Although Mantz currently has a technological advantage, Aiden's research indicates that Mantz's competitors are investigating other methods to improve efficiency. Given this, Aiden believes that Mantz's technological advantage will last only for the next five years. After that period, the company's growth will likely slow to the industry average. Additionally, Aiden believes the industry average required return is more appropriate. Under Aiden's assumptions, what is the estimated stock price? (Do not round intermediate calculations) a. Calculate the industry's average growth rate. You may need to adjust for nonrecurring events that would impact the industry information 15.64% Average Industry Growth Rate = b. Calculate the Dividends for Mantz for each of the next 6 years c. What is the value of the stock today and what is the value per share