To verify their calculations, Carrington and Gene$-$vieve have hired Josh Schlessman as a consul$-$tant$.$ Josh was previously an equity analyst and covered the HVAC industry. Josh has examined the company$$s financial statements, as well as those of its competitors. Although Ragan, Inc., currently has a technological advantage, his research indicates that other companies are investigating methods to improve efficiency. Given this, Josh believes that the company$$s technological advantage will last only for the next five years. After that period, the company$$s 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?

QUESTIONS

Assuming the company continues its current

growth rate, what is the value per share of the

company's stock?

To verify their calculations, Carrington and Gene$-$

vieve have hired Josh Schlessman as a consul$-$

tant$.$ Josh was previously an equity analyst and

covered the HVAC industry. Josh has examined

the company's financial statements, as well as

those of its competitors. Although Ragan, Inc.,

currently has a technological advantage, his

research indicates that other companies are

investigating methods to improve efficiency.

Given this, Josh believes that the company's

technological advantage will last only for the

next five years. After that period, the company's

growth will likely slow to the industry growth

average. Additionally, Josh belleves 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?