Last year, Ragan had an EPS of $5.35 and paid a dividend to Carrington and Genevieve of $320,000 each. The company also had a return on equity of 21 percent. Larissa tells Dan that a required return for Ragan of 18 percent is appropriate.

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

What steps can they take to try and increase the price of the stock? Are there any conditions under which this strategy would not increase the stock price?