The Present Value of Growth Opportunities (PVGO) Is Equal ToI)

question 93

Multiple Choice

The present value of growth opportunities (PVGO) is equal toI) 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
• E) III and IV

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