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A firm has a current capitalization rate (cost of equity) of 12.5%, a P/E ratio of 30, stock price of $110/share and a capital gain
A firm has a current capitalization rate (cost of equity) of 12.5%, a P/E ratio of 30, stock price of $110/share and a capital gain growth rate at 3%. Based on this information, what is the firms present value of growth opportunity (PVGO)?
A. $80.72
B. $62. 58
C. $93. 17
D. $79.79
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