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Need assistance for questions regarding the attached - growth rate, share price, etc. All questions need completion (1 through 5). Chapter 6: Case Study (Page

image text in transcribed

Need assistance for questions regarding the attached - growth rate, share price, etc. All questions need completion (1 through 5).

image text in transcribed Chapter 6: Case Study (Page 197) Stock Valuation at Ragan Engines Data Blue Ribband Motor Corp Bon Voyage Marine Inc. Nautilus Marine Engines Industry average Industry av. Nautilus without write of Industry average minus Nautilus Ragan Engines Inc. EPS $ Other Data Reagan Shares Outstanding Dividends Column1 250000 315000 $ $ $ $ 1.15 1.45 -0.21 0.80 1.48 1.30 4.20 DPS Stock PriceROE R $ 0.34 $ 18.25 13.00% 0.42 15.31 16.00% 0.6 28.72 $ 0.45 $ 20.76 14.50% $ $ 0.38 $ 16.78 1.26 14.50% 20.00% 15.00% 18.00% 14.00% 15.67% 16.50% 16.00% Question 1 Growth (g)= Growth (g)= Share Price = Question 2 Growth Industry (g ind) Growth in Dividends Ragan Dividends per share Value of Stock in year 5 (P5) = Cash flows to be discounted Discount Rate Price of Stock Year 0 (P0) = Year 0 Year 1 Question 3 Industry Average P/E with Nautilus Ragan P/E Compose your response to question 3 in the space below: Question 4 Stock price with existing growth rate Stock price with industry av. Growth Percentage attributable to growth Question 5 ROE = Compose your response to question 5 in the space below: Year 2 Year 3 Year 4 Year 5 Year 6

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