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What is the industry price-earnings ratio? What is the price-earnings ratio for Ragan, Inc.? Is this the relationship you would expect between the

What is the industry price-earnings ratio? What is the price-earnings ratio for Ragan, Inc.? Is this the relationship you would expect between the ratios? Why or why not?

Last year, Ragan, Inc., had an EPS of $3.75 and paid a
dividend to Carrington and Genevieve of $48,000 each. The
company also had a return on equity of 17 percent. The siblings believe that 14 percent is an appropriate required return
The original partnership agreement between the siblings gave each 50,000 shares of stock.


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