The company is equally owned by Carrington and Genevieve. The original agreement between the siblings 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,

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

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

of $18$ percent is appropriate.

Assume the company's growth rate declines to the industry average after five years. What percentage of the stock's value $-$

is attributable to growth opportunities?