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Larissa has asked Dan to determine a value per share of Ragan stock. To accomplish this, Dan has gathere competitors that are publicly traded:
Larissa has asked Dan to determine a value per share of Ragan stock. To accomplish this, Dan has gathere competitors that are publicly traded: Earnings per share (EPS) Dividend per share (DPS) Stock price per share Estimated growth Required rate of rate return (R) Blue Ribband $1.24 $0.39 $20.10 7.54% 15% Motors Corp. Bon Voyage $1.55 $0.47 $16.85 9.75% 17% Marine, Inc. Nautilus -$0.25* $0.67 $31.60 8.06% 13% Marine Engines *Nautilus Marine Engine's negative EPS was the result of a non-recurring accounting write-off last year. Without $1.93. Dan has examined the company's financial statements research indicates that Ragan's competitors are investi will last only for the next 5 years. After that period, the return of 13% is too low. He believes that the industry
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