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please see attachment, im having problems with all of the questions Blue ribband corp Bon voyage marine inc Nautilus marine engines Industry average EPS $1.09

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please see attachment, im having problems with all of the questions

image text in transcribed Blue ribband corp Bon voyage marine inc Nautilus marine engines Industry average EPS $1.09 DPS $.19 Stock Price $16.32 ROE 10.00% R 12.00% $1.26 .55 $13.94 12.00 17.00 (.27) .57 23.97 n/a 16.00 $.69 $.44 18.08 11.00% 15.00% Nautilus Marine Engines negative per share ( EPS) were the result of an accounting write-off last year. With out the write-off, EPS for the company would have been $2.07. Last year, Regan had an EPS of $5.35 and paid a dividend to Carrington and Genevieve of $320,000 each. The company also had a return of equity of 21 percent. Larissa tells Dan that a required return for Regan of 18% is appropriate. 1. Assuming the company continues its current growth rate, what is the value per share of the company's stock? 2. Dan has examined the company's financial statements, as well as examining those of its competitors. Although Ragan currently has a technological advantage, Dan's research indicates that Ragan's competitors are investigating other methods to improve efficiency. Given this, Dan believes that Ragan's technological advantage will last only for the next five years. After that period, the company's growth will likely slow to the industry average. Additionally Dan believes that the required return the company uses is too high. He believes the industry average required return is more appropriate. Under Dan's assumption, what is the estimated stock price? 3. What is the industry average price-earning ratio? What is Ragan's price-earning ratio? Comment on any differences and explain why they may exist? 4. Assume the company's growth rate declines to the industry average after 5 years. What percentage of the stock's value is attributable 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. Carrington and Genevieve are not sure if they should sell the company. If they do not sell the company out right to East Coast Yatchs, they would like to try and increase the value of the company 's stock. In this case, they want to retain control of the company and do not to sell stock to outside investors. They also feel that the company's debt is at a manageable level and do not want to borrow more money. What steps can they take to try increase the price of the stock? Are there any conditions under this strategy would not increase the stock price

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