Calculate and interpret the present value of growth opportunities (PVGO):

Here is a company's information:

Share price $80 Expected earnings $5 Required return on shares 10%.

Choose the best answer:

A) $30 of the firm's value is attributable to the no-growth per share value. The remaining $50 of the firm's value is attributable to PVGO. B) $50 of the firm's value is attributable to the no-growth per share value. The remaining $30 of the enterprise value is attributable to PVGO. C) $40 of the enterprise value is attributable to the no-growth per share value. The remaining $40 of enterprise value is attributable to PVGO.