Firm A has a stock price of $35 and 60% of the value of the stock is in the form of PVGO.Firm B also has a stock price of $35 but only 20% of the value of Stock B is in the form of PVGO.We know that _________.
I.Stock A will give us a higher return than Stock B
II.an investment in Stock A is probably riskier than an investment in Stock B
III.Stock A has higher forecast earnings growth than Stock B
A) I only
B) I and II only
C) II and III only
D) I, II and III
Correct Answer:
Verified
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