Question $7$

Under what condition is r$,$ cost of equity, less than its earnings to price ratio EPS$1/$P$0?$

Group of answer choices

when the present value of growth opportunity $($PVGO$)$ is less than $0$

None of other choices

when the present value of growth opportunity $($PVGO$)$ is equal to $0$

when the present value of growth opportunity $($PVGO$)$ is greater than $0$

Question $8$

The value of a share equals the PV of future dividends per share.

Group of answer choices

true

false