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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
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 of its units. The company is equally owned by Carrington and Genevieve. The original partnership agreement between the siblings gave each 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. To get started, they have gathered the information about their main competitors in the table below.
Expert HVAC Corporation's negative earnings per share were the result of an accounting writeoff last year. Without the writeoff, earnings per share for the company would have been $ The ROE for Expert HVAC is based on net income excluding the writeoff.
Last year, Ragan, Inc., had an EPS of $ and paid a dividend to Carrington and Genevieve of $ each. The company also had a return on equity of percent. The siblings believe that percent is an appropriate required return for the company.
tableRagan Inc., CompetitorsEPS,DPSStock Price,ROE,
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