Assuming All of the Following Firms Have a Required Return

Multiple Choice

Assuming all of the following firms have a required return of 14%,which would you expect to have a positive present value of growth opportunities?

A) A firm with a P/E ratio of 9.
B) A firm with a P/E ratio of 6.
C) A firm with an E/P ratio of 20%.
D) None of these firms are expected to have positive PVGO.