Stock Valuation at Ragan Engines

STOCK VALUATION at RAGAN, Inc Regan Thermal System Inc was founded 9 years ago by brother and sister Carrington and Genevieve Regan. The union manufactures and installs commercial heating, ventilation, and cooling (HVAC) units. Ragan has experienced rapid growth because of a propriety technology that increases the energy efficiency of its system. The comp all is equally owned by Carrington and Genevieve. The original agreement between the siblings gave individually 50,000 shares of stock. In the event either wished to sell the stock, the shares first had to be offered to the other at a discounted price. Although neither siblings emergencys to sell any shares at this time, they have decided they should pry their holdings in the fraternity for financial planning purposes. To accomplish this, they have gathered the future(a) information about their main competitors. EPS DPS STOCK PRICE hard roe R Arctic cooling Inc. $0.79 $0.20 $14.18 10% 10% National warmth&Cooling 1.38 0.62 11.87 13 13 Expert HVAC Corp. -0.48 0.38 13.21 14 12 Industry comely $0.56 $0.40 $13.09 12.33% 11.

67% Expert HVAC Corp.s negative EPS were the result of an accounting acknowledge last year. Without the write-off, EPS of the federation would have been $1.06 Last year Regan had an EPS of $4.54 and gainful a dividend to Carrington and Genevieve of $63,000 each. The company also had a ROE of 25%. The siblings believe a required return for the company of 20% is appropriate. Question 1. Assuming the company continues its current growth rate, what is the value per share of the companys stock? Question 2. To blaspheme their calculations, Carrington and Genevieve have hired tease Schlessman as a consultant. Josh was previously an equity analyst, and he has covered the HVAC industry. Josh has examined the companys financial statements as well as those of its competitors. Although Ragan... If you want to get a full essay, order it on our website: Ordercustompaper.com

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