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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)?
B. $19.75.
C. $22.47.
A. $15.40.
B. $19.75.
C. $22.47.
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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
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.