Multiple Choice
The net present value of a growth opportunity, NPVGO, can be defined as:
A) the present value of an investment in one new project.
B) the steady growth in dividends from continual re-investment with positive NPV.
C) continual reinvestment of earnings when r < g.
D) a single period investment when r > g.
Correct Answer:
Verified
Correct Answer:
Verified
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