Question: Can someone help me solve this not using excel? I've seen a couple of varying answers on Chegg and wondered if someone could give me

Can someone help me solve this not using excel? I've seen a couple of varying answers on Chegg and wondered if someone could give me a definitive one? (please not using excel though)

Note: Please help to give elaborate answer with steps and explanation for each step taken? I'm very new to this so the simpler the better aha!

Thanks in advance!

Can someone help me solve this not using excel? I've seen a

WEST COAST YACHTS The directors of West Coast Yachts are considering vertical expansion of the com acquiring an engine manufacturer to allow it to integrate its supply chaiapany by control over engine features. After investigating several possible companies, the d consider that Arison Engines Inc. is a possibility n and have more irector Arison Engines Inc. is a privately owned company and equally owned by a couple A has experienced rapid growth in the recent few years. The couple owns 200.000 share The directors have asked David, the analyst, to determine the value per share stock. David has gathered the following information about some of Arison's com that publicly traded of Arison DPS $1.05 $0.15 1.15 0.50 1.86 0.54 0.40 2.00 Stock Price $15.20 12.50 22.00 16.57 EPS ROE 4% Red Motors Corp 11% Yelow Marine Engines 115 0.0 Pink Marine Engines Industry Average Arison Engines Inc. 19 18 17 ni 20 n/a 13 25 5.06 1. Assuming the company continues its current growth rate, what is the value per share of the company's stock? 2. Although Arison currently has technological advantage, research indicates that its com- petitors are investigating other methods to improve efficiency and that Arison's techno- logical advantage will last for only the next five years. After that period, the company's growth will likely slow to the industry average. Besides, David believes that the required return of the company is too high. He believes the industry average required return is more appropriate. Under David's assumptions, what is the estimated stock price? 3. What is the industry average price-earnings ratio? What is Arison's price-earnings 4. Assume the company's growth rate slows to the industry average in five years. What 5. The couple is not sure if they should sell the company. If they do not sell the company ratio? Comment on any differences and explain why they may exist. future ROE does this imply? to West Coast Yachts, they would like to try and increase the value of the companys stock. In this case, they want to retain control of the company and do not want to sell stock to outside investors. They feel that the company's debt is at a manageable level. What steps can they take to try and increase the price of the stock? Are there any con- ditions under which this strategy would not increase the stock price

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