# On page 274, do questions 1 and 2On page 237, do question 1

On page 274, do questions 1 and 2On page 237, do question 1 onlyRead the case. Focus on the information directly given about Ragan, Inc (not its competitors)Show all of these steps:Start by computing total dividends given to the brother and sisterDetermine total shares outstanding for brother and sisterDetermine total earnings for the companyDetermine what fraction of earnings is paid as dividends (Payout ratio)Then determine the fraction that is not paid as dividends (what is retained) = Retention ratioCalculate growth rate by using formula: g = (ROE) X (Retention Ratio)Determine the current dividend per share (D0 ) based on the dividends paid and number of shares Determine the value per share of the company’s stock (P0) by using: P0 = D1 / (R – g) (Notice the formula uses D1, the next year dividend, which you have to determine)