The company is equally owned by Carrington and Genevieve. The original agrecment between the siblingx gave each $50,000$ shares of

stock.

Larissa has asked Dan to determine a value per share of Ragan stock. To accomplish this, Dan has gathered the following information

about some of Ragan's competitors that are publicly traded:

Nautilus Marine Engines's negative earnings per share $($EPS$)$ were the result of an accounting write$-$off last year. Without the write$-$

off, EPS for the company would have been $$1,60,$ Last year, Ragan had an EPS of $$4\mathrm{.}54$ and paid a dividend to Carrington and

Genevieve of $$60,000$ each. The company also had a return on equity of $18$ pereent. Larissa tells Dan that a required return for Ragan

of $18$ percent is appropriate.

Dan has examined both the company's financial statements and those of its competitors. Although Ragan currently has a

technological advantage. Dan's research indicates that Ragan's competitors are investigating other methods to improve efficiency.

Given this, Dan believes that Ragan's technological advantage will last only for the next five years. After that period, the

company's growth will likely slow to the industry average. Additionally. Dan believes that the required return the company uses is

too high. He believes the industry average required return is more appropriate. Under Dan's assumptions, what is the estimated

stock price?