Ragan, Inc., was founded nine years ago by brother and sister Carrington and Genevieve Ragan. The company manufactures and installs commercial heating, ventilation, and cooling (HVAC) units. Ragan, Inc., has experienced rapid growth because of a proprietary technology that increases the energy efficiency in its units. The company is equally owned by Carrington and Genevieve. The original partnership agreement between the siblings gave each 50,000 shares of stock. In the event either wished to sell stock, the shares first had to be offered to the other at a discounted price. Although neither sibling wants to sell, they have decided they should value their holdings in the company. The get started, they have gathered the following information about their main competitors:

Ragan Inc. - Competitors
		Eps.	Div.	Stock Price.	ROE	R
Article Cooling, Inc.		$1.30	$0.16	$25.34	8.50%	10.00%
National Heating & Cooling		1.95	0.23	29.85	10.5	13
Expert HVAC Corp.		-0.37	0.14	22.13	9.78	12
Industy Avarage		$0.96	$0.18	25.77	9.59%	11.67

Expert HVAC Corporations negative earnings per share were the result of an accounting writeoff last year. Without the write-off, earnings per share for the company would have been $1.10. Last year, Ragan, Inc., had an EPS of $3.15 and paid a dividend to Carrington and Genevieve of $45,000 each. The company also had a return on equity of 17%. The siblings believe that 14% is an appropriate required return for the company.

1. Assuming the company continues its current growth rate, what is the value per share of the companys stock?
2. To verify their calculations, Carrington and Genevieve have hired Josh Schlessman as a consultant. Josh was previously an equity analyst and covered the HVAC industry. Josh has examined the companys financial statements, as well as examining its competitors. Although Ragan, Inc., currently has a technological advantage, that other companies are investigating methods to improve efficiency. Given this, Josh believes that the companys technological advantage will last only for the next five years. After this period, the companys growth will likely slow to the industry growth average. Additionally, Josh believes that the required return used by the company is too high. He believes the industry average required return is more appropriate. Under this growth rate assumption, what is your estimate of the stock price?