Question
ABCs stock trades at $70, next years earnings are going to be $7, earnings are growing at 5%, and the required rate of return is
ABCs stock trades at $70, next years earnings are going to be $7, earnings are growing at 5%, and the required rate of return is 14%. The Present Value of Growth Opportunities (PVGO), equal to the excess of the stock price over the no growth value is:
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Theoretical Foundations For Quantitative Finance
Authors: Luca Spadafora, Gennady P Berman
1st Edition
9813202475, 978-9813202474
