Icled nine years ago by brother ixen incoy that ncieases the energy efficiency of its unts. The company is equally owned by Carrington and Coneveve 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 offered to the other at a discounted price. Although neither sibling wants to sell, they have decided they should value their holdings in the company. Expert HVAC Corporation's negative earnings per To get started, they have gathered the following infor- share were the result of an accounting write-off last year. mation about their main competitors: Without the write-off, earnings per share for the company would have been $1.10. Last year, Ragan, Inc., had an EPS of $3.15 and paid a dividend to Carrington and Genevieve of $45,000 each. The company also had a return on equity of 17 percent. The siblings believe that 14 percent is an appropriate required return for the company