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please help in excel questions 1-6 pleasee. Lancsa has beer taling with teo company's difectors about the future of teaste uoppliers for varioas key componeats

please help in excel questions 1-6 pleasee. image text in transcribed
Lancsa has beer taling with teo company's difectors about the future of teaste uoppliers for varioas key componeats of the company's yachts, incividing engincs. Larisca has decided that East Coast Yachss should consider the parchase of an engine makaheturer to allow Exst Cosst Yachts to better integrate its supply chain and get mote eontrol over enpine fateres. After invetieatinz several possible companies, Larissa fecls that the parchase of Ragan Eagines, Ine, is a possibaty, Sbe has asked Dan Ervin to analyze Ragan's value. Rapaa Eazinex. Ise, was founded nine yearr ago by a brother and sister-Carrington and Grencvieve Ragan-and has remained a privately owned company. The company manufactures marine engines for a variety of applications. Ragan has experienced rapid growth because of a proprictary technology that increlses the fuct efficiescy of its engines with very little sacrifice in performance. The cumpany is equally awned by Cartingten asd Gesevieve. The oricinal agresment beteecn the siblings gave each 50,000 shares of stock. Lurise has aked Den to determine a valoo fer share of Rayan stock To accomplish this, Dan has gathered the following information about soenc of Rapan's competitors that are publicly traded: Nautias Mariae Englines's segathe earaings per share (EPS) were the resalt of at accounting writo-of hast year. Without the write-off, EPS for the company would havo been \$1.60. Last year, Ragan had an EPS of $4.54 and paid a dividend to Carrineton and Genevieve or $60,000 each. The coespany aleo had a return on equity of 18 perecnt. Larissa tells Dan that a requircd retura for Ragan of 18 percent is appropriate. 1. Asuming the corapary continues its eurnent growth nate, what is the value per share of tbe company's wock? advatage. Dan's festarch indicatec that Rayan's competitors ate investigating other methods to improve cillciency. Given this, Dan believes that Rogan's technological sdvagiage vill last onty for the next five ytart. After that period, the company's growtb will likeby slow to the industry averas. Additionaily. Dan believer that the required zetarn the corapamy uses is too high, He believes the industry average requited retura is none appropriate. Undsr Dan's assumptions. What is the estimated stock price? 3. What is the industry averace price-arnings fatio? What is Ragan's ptice earnings ratio? Commeat on any differences and explain why they moy exist. 4. Assume the coepary's erowth rate declines to the industry average after five years. What percentage of the stock's valoe is Atriturabla to grouth of poctunities? Page 298 6. Curifytoa and Genevitoe are not sure if they should sell the company. If they do not sell the conpany outright to East Couss Yachts. they would like to try and iscreate the value of the eompawys stock. In this case, thicy wart to retain control of the eornpany and do not money. What strpi can they take to try to increase the price of the slock? Are there ary conditions under which this stratejy would not inercase tie ttock prike

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