Larissa 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 aro publicly traded:

Nautilus Marine Engines's negative carnings per share $($EPS$)$ were the result of an accounting write$-$off last year. Without the write$-$

off, EPS for the company would tave boen $$1\mathrm{.}60.$ Last year, Ragan had an EPS of $$4\mathrm{.}54$ and paid a dividend io Carrington and

Genevieve of $$60,000$ each. The company also had a return on equity of $18$ percent. Larissa tells Dan that a requirod return foe Ragan

of IS pereent is appoppriate.

Assume the company's growth rate declines to the industry average after five years. What percentage of the stock's value

is attributable to growth opportunities?