Chapter 7
Input area:
Shares owned by each sibling 50,000
Ragan EPS 4.85$
Dividend to each sibling 75,000$
Ragan ROE 17%
Ragan required return 14%
Output area:
1) Total dividends 150,000$
Total earnings 485,000$
Retention ratio 0.69
Growth rate 11.74%
Current dividend per share 1.50$
Dividend per share next year 1.68$
Value per share 74.24$
Stock value in Year 5 58.52$
Stock price today 41.22$
Stock Valuation at Ragan Thermal Systems