please answer using excel

Stock Valuation at Ragan Engines Larissa has been talking with the company's directors abouf the foture of East Coast Yachts. To this point, the company has used outside sopplicrs for various key components of the company's yachts, including engines, Larissa has decided that East Coast Yachts should consider the purchase of an engine manubacturer to allow East Cosst Yachts to better integrate its supply chain and get more control over engine features. After investizating several possible companies, Larista feels that the purchase of Ragan Engines, Inc, is a possibility. She has asked Dan Ervia to analyze Ragan's value. Ragan Engines, Inc, was founded sine years ago by a brosher and sister-Carrington and Genevieve Ragan-and has reanained a privately owned company. The company manufactures marinc engines for a variety of applications. Ragan has experichced rapid growth because of a proprietary tecbnology that increases the fuel cficicncy of its engines with very little sacrifice in performance. The company is equally owned by Carringlon and Cenevieve. The original agreement betwecn the siblings gave each 50000 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 shate (EPS) were the result of an accoanting write-otf last year, Without the write-oti, EPS for the company would have been \$1.60. Last year, Ragan had an EPS of \$4.54 and paid a dividend to Catrington and Genevieve of \$60,000 each. The company also had a retarn on equity of 18 percent. Larisa tells. Dan that a reuited return for Ragan of 18 percent is appropriate 1. Assumine the company continues its current growth rate, what is the value per share of the company's stock? 2. Dan has examised both the company's financinl statements and those of its competitors, Altheagh Ragan currently has a tochnological advantage, Dan's rescarch indicates that Regan's competitors are investigating othef methods to improve efticiency, Given this. Dan believes that Ragan's techaological advantage will last only for the ned five years. After that period, the company's growth will likely slow to the indatry averape. Additionally, Dan believes that the fequired return the company uses is too hizh. He believes the industry average requited return as move approptiate. Undor Dan's assumptions, what is the estimated stock price? 3. What is the industry average price carninis ratiol What is Ragan's pecicecaraings ratio? Comment on any differences and explain why they may caist 4. Asume the company's zrowth rate doclines to the industry average after five years. What percestapo of the stock's value is Page 298 astioutabie to growth opportunities? 5. Assume the company's growth rate slows to the industry average in five years. What future return on equity does this imply? 6. Carnington and Genevicve are not sore if they thoold scil flec company. If they do pot sell the conpany outright to East Coast Yachisi they wsuld like to try and increate the vatue of the company's stack. In this case, they want to retain control of the contpany and do not want to seli stock to out side investort. They also feef that the company's debt is at a manageable level and do nos want to borrow mere mones What steps can they take to try to increse the price of the soct? Ase there azy conditiors under which this stratery wauld not increase the stock price? Stock Valuation at Ragan Engines Larissa has been talking with the company's directors abouf the foture of East Coast Yachts. To this point, the company has used outside sopplicrs for various key components of the company's yachts, including engines, Larissa has decided that East Coast Yachts should consider the purchase of an engine manubacturer to allow East Cosst Yachts to better integrate its supply chain and get more control over engine features. After investizating several possible companies, Larista feels that the purchase of Ragan Engines, Inc, is a possibility. She has asked Dan Ervia to analyze Ragan's value. Ragan Engines, Inc, was founded sine years ago by a brosher and sister-Carrington and Genevieve Ragan-and has reanained a privately owned company. The company manufactures marinc engines for a variety of applications. Ragan has experichced rapid growth because of a proprietary tecbnology that increases the fuel cficicncy of its engines with very little sacrifice in performance. The company is equally owned by Carringlon and Cenevieve. The original agreement betwecn the siblings gave each 50000 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 shate (EPS) were the result of an accoanting write-otf last year, Without the write-oti, EPS for the company would have been \$1.60. Last year, Ragan had an EPS of \$4.54 and paid a dividend to Catrington and Genevieve of \$60,000 each. The company also had a retarn on equity of 18 percent. Larisa tells. Dan that a reuited return for Ragan of 18 percent is appropriate 1. Assumine the company continues its current growth rate, what is the value per share of the company's stock? 2. Dan has examised both the company's financinl statements and those of its competitors, Altheagh Ragan currently has a tochnological advantage, Dan's rescarch indicates that Regan's competitors are investigating othef methods to improve efticiency, Given this. Dan believes that Ragan's techaological advantage will last only for the ned five years. After that period, the company's growth will likely slow to the indatry averape. Additionally, Dan believes that the fequired return the company uses is too hizh. He believes the industry average requited return as move approptiate. Undor Dan's assumptions, what is the estimated stock price? 3. What is the industry average price carninis ratiol What is Ragan's pecicecaraings ratio? Comment on any differences and explain why they may caist 4. Asume the company's zrowth rate doclines to the industry average after five years. What percestapo of the stock's value is Page 298 astioutabie to growth opportunities? 5. Assume the company's growth rate slows to the industry average in five years. What future return on equity does this imply? 6. Carnington and Genevicve are not sore if they thoold scil flec company. If they do pot sell the conpany outright to East Coast Yachisi they wsuld like to try and increate the vatue of the company's stack. In this case, they want to retain control of the contpany and do not want to seli stock to out side investort. They also feef that the company's debt is at a manageable level and do nos want to borrow mere mones What steps can they take to try to increse the price of the soct? Ase there azy conditiors under which this stratery wauld not increase the stock price