Person C and Person GR are the founder and owners of the R Company. This company commercially produces and installs heating, ventilation, and cooling units (HVAC). Both the owners have 50,000 shares of the company’s stock as per the partnership deed. They wanted to sell their stocks and decided to value their holding in the company. The R Company has earnings per share of $4.85 and dividends of $75,000 each were paid to the owners of the company. Moreover, there is even the Return on equity (ROE) of 17% and required rate of return is 14%. Characters in the case: R Company: The firm wants to value their stocks. Person C: Co-owner of Company R Person GR: Co-owner of Company R. To determine: The Company’s value per share of the stock.

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Chapter 7, Problem 1CC

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Person C and Person GR are the founder and owners of the R Company. This company commercially produces and installs heating, ventilation, and cooling units (HVAC). Both the owners have 50,000 shares of the company’s stock as per the partnership deed. They wanted to sell their stocks and decided to value their holding in the company.

The R Company has earnings per share of $4.85 and dividends of $75,000 each were paid to the owners of the company. Moreover, there is even the Return on equity (ROE) of 17% and required rate of return is 14%.

Characters in the case:

R Company: The firm wants to value their stocks.

Person C: Co-owner of Company R

Person GR: Co-owner of Company R.

To determine: The Company’s value per share of the stock.

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