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Basic Question 1 of 1

ABC Corp. shares are currently trading at $54.16. If its current earnings are $3.45 and the required rate of return for the stock is 8.9%, which of the following best estimate the stock's present value of growth opportunities (PVGO)?

A. $15.40.
B. $19.75.
C. $22.47.

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I used your notes and passed ... highly recommended!
Lauren

Lauren

Learning Outcome Statements

calculate and interpret the present value of growth opportunities (PVGO) and the component of the leading price-to-earnings ratio (P/E) related to PVGO;

CFA® 2025 Level II Curriculum, Volume 3, Module 21.