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i need help on 5-6 already done the rest ly 5. Assume the company's growth rate slows to the industry average in five years. What

i need help on 5-6 already done the rest
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ly 5. Assume the company's growth rate slows to the industry average in five years. What future return on equity does this imply, assuming a constant payout ratio? 6. After discussing the stock value with Josh, Carrington and Genevieve agree that they would like to increase the value of the company stock. Like many small business owners. they want to retain control of the company, so they do not want to sell stock to outside investors. They also feel that the company's debt is at a manageable level and do not want to borrow more money. How can they increase the price of the stock? Are there any conditions under which this strategy would not increase the stock price? mat MINICASE Stock Valuation at Ragan, Inc. Rapan, Inc., was founded nine years ago by brother and sis: ter Carrington and Genevieve Ragan. The company manufac tures and installs commercial heating, ventilation, and cooling (HVAC) units. Ragan, Inc. has experienced rapid growth because of a proprietary technology that increases the energy efficiency of its units. The company is equally owned by Car rington and Genevieve. The original partnership agreement between the siblings gave each 50,000 shares of stock. In the event either wished to sell stock, the shares first had to be of fered to the other at a discounted price. Although neither sibling wants to sell they have decided they should value their holdings in the company. To get started, they have gathered the information about theit tors in the table below. Expert HVAC Corporation's negative care were the result of an accounting write-off late the write-off, earnings per share for the company been $1.10. The ROE for Expert HVAC Ibalo excluding the write-off. Last year, Rapan, Inc., had an EPS of $15 idend to Carrington and Genevieve of S45,000 pany also had a return on equity of 17 percent believe that 14 percent is an appropriate route the company ROE Arctic Cooling, Inc National Heating & Cooling Expert HVAC Corp Industry Average Ragan, Inc., Competitors EPS DPS Stock Price $1.30 $.16 $25.34 1.95 23 29.85 = 32 14 22.13 $ 96 $.18 $25.77 8.50% 10.50 9.78 9.59% 10.00% 13.00 1200 11.671

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