4 points You find that the present value of growth opportunities (PVGO) for a stock is negative. This implies that... Management is investing the retained capital in projects that are generating a return MORE than the return that investors require. The stock is undervalued by the market. Management is investing the retained capital in projects that are generating a return LESS than the return that investors require. The stock price would NOT be better if management would just pay out 100% of earnings as dividends