The present value of growth opportunities (PVGO) is equal to: I) the difference between a stock's price and its no-growth value per share. II) the stock's price. III) zero if its return on equity equals the discount rate. IV) the net present value of favorable investment opportunities.

Respuesta :

Answer: I, III and IV

Explanation:

The present value of growth opportunities (PVGO) is equal to the difference between the price of a stock and its no-growth value per share.

It us also equal to zero if its return on equity equals the discount rate and us also the net present value of favorable investment opportunities.

The present value of growth opportunities (PVGO) is not equal to the stock price. Therefore, option I, III and IV are correct.