Recent values of P₀ (current stock price),X₀ (current reported EPS),and r (equity cost of capital)for Alpha Company follow:
$\begin{array}{ccc}P_{0} & X_{o} & \boldsymbol{r} \\\$ 23.50 & \$ 1.47 & 0.150\end{array}$
Required:
Compute Alpha's NPVGO (net present value of future growth opportunities).

Question

Recent values of P₀ (current stock price),X₀ (current reported EPS),and r (equity cost of capital)for Alpha Company follow:

\begin{array}{ccc}P_{0} & X_{o} & \boldsymbol{r} \\\$ 23.50 & \$ 1.47 & 0.150\end{array}

Required:
Compute Alpha's NPVGO (net present value of future growth opportunities).

Quizplus · Accepted Answer

The Answer of Recent values of P₀ (current stock price),X₀ (current reported EPS),and r (equity cost of capital)for Alpha Company follow: $\begin{array}{ccc} P_{0} & X_{o} & \boldsymbol{r} \ \$ 23.50 & \$ 1.47 & 0.150 \end{array}$ Required: Compute Alpha's NPVGO (net present value of future growth opportunities).

Recent Values of P0 (Current Stock Price),X0 (Current Reported EPS),and P0Xor$23.50$1.470.150\begin{array}{ccc}P_{0} & X_{o} & \boldsymbol{r} \\\$ 23.50 & \$ 1.47 & 0.150\end{array}P0​$23.50​Xo​$1.47​r0.150​

Recent Values of P₀ (Current Stock Price),X₀ (Current Reported EPS),and $\begin{array}{ccc}P_{0} & X_{o} & \boldsymbol{r} \\\$ 23.50 & \$ 1.47 & 0.150\end{array}$