Larissa has been talking with the company's directors about the future of East Coast Yachts. To this point, the company has used outside suppliers for various key components of the company's yachts, including engines. Larissa has decided that east Coast Yachts should consider the purchase of an engine manufacturer to allow East Coast Yachts to better integrate its supply chain and get more control over engine features. After investigating several possible companies, Larissa feels that the purchase of Ragan Engines, Inc. is a possibility. She asked Dan Ervin to analyse Ragan's value. Ragan Engines, Inc., was founded nine years ago by a brother and sister $-$ Carrington and Genevieve Ragan $-$ and has remained a privately owned company. The company manufactures marine engines for a vaiteity of applications. Ragan has experienced rapid growth becuase of a proprietary technology that increases the fuel efficiency of its engines with very little sactifice in performance. The company is equally owned by Carrington and Genevieve. The original agreement between siblings gave each $50,000$ shares of stock. Larissa has asked Dan to determine a vlue per share of Ragan stock. To accomplish this, Dan has Gathered the following information about some of Ragan's competitors that are publicly traded: Blue Ribband Motors Corp. EPS $$\mathrm{.}81$ DPS $$\mathrm{.}20$ Stock Price $$14\mathrm{.}18$ ROE $10\%$ R $10\%$ Bon Voyage Marine, Inc. EPS $1\mathrm{.}38,$ DPS $\mathrm{.}62,$ Stock price $11\mathrm{.}87,$ ROE $13,$ R $13,$ Nautilus Marine Engines EPS $1\mathrm{.}06,$ DPS $\mathrm{.}38,$ Stock Price $13\mathrm{.}21,$ ROE $14,$ R $12,$ Industry Average EPS $$1\mathrm{.}08,$ DPS $\mathrm{.}40,$ Stock price $$13\mathrm{.}09,$ ROE $12\mathrm{.}33,$ R$11\mathrm{.}67\%.$ Last year, Ragan had an EPS of $$4\mathrm{.}54$ and paid a dividend to Carrington and Genevieve of $$60,000$ each. The company also had a return on equity of $18\%.$ Larissa tells Dan that a required rate of return for Ragan of $15\%$ is appropriate.

$1)$ Assuming the company continues its current growth rate, what is the value per share of the company's stock?

$2)$ Dan has examined the company's financial statements and those of its competitors. Although Ragan currently has a technological advantage, Dan's research indictes that Ragan's competitors are investigating other methods to improve efficiency. Given this, Dan believes that Ragan'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. additionaly, Dan believes that the requried return the company uses is too high. He believes the industry average required retun is more appropriate. Under Dan's assumption, what is the estimated stock price?