The Present Value of Growth Opportunities (PVGO) Is Equal to I)

question 92

Multiple Choice

The present value of growth opportunities (PVGO) is equal to I) the difference between a stock's price and its no-growth value per share.
II) the stock's price.
III) zero if its return on equity equals the discount rate.
IV) the net present value of favorable investment opportunities.

• A)I and IV
• B)II and IV
• C)I, III, and IV
• D)II, III, and IV

---

Definitions:

Pavlovian Conditioning

Also known as classical conditioning, it's a learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus.

Drive

An internal motivational state created by physiological or psychological needs that drive behavior toward fulfilling those needs.

Incentive Factors

Elements or conditions that motivate or encourage individuals to perform specific actions or behaviors.