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Tri-coat Paints has a current market value of $55 per share with earnings of $5.50. Find the present value of its growth opportunities (PVGO) if

Tri-coat Paints has a current market value of $55 per share with earnings of $5.50. Find the present value of its growth opportunities (PVGO) if the required return is 10%? What can you conclude?

A. Tri-coat Paints is overvalued.

B. Tri-coat Paints is undervalued.

C. Tri-coat Paints is properly valued.

D. Tri-coat Paints is a growth stock.

E. Tri-coat Paints is not a growth stock.

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