There is a __________ relationship between the present value of growth opportunities within a firm and...

There is a __________ relationship between the present value of growth opportunities within a firm and that firm's price to earnings ratio.

		Negative
		Non-existent
		Positive
		Strange

Expert Solution

The answer is as follows:

jeff jeffy answered 1 year ago

The present value of growth opportunities (PVGO) will be __________ when the return on investment is...

The present value of growth opportunities (PVGO) will be __________ when the return on investment is lower than the cost of equity.

Explain the relationship between an organization’s context and its management of risks and opportunities within a...

Explain the relationship between an organization’s context and its management of risks and opportunities within a 14001-based EMS. Describe at least three types of information that managers should obtain from the organization’s context that should be included as part of the EMS, and identify the specific clauses of 14001 where this information would be needed.

what is the relationship between the present value factor and the annuity present value factor

Explain the relationship between the present value and future value of a sum when the interest...

Explain the relationship between the present value and future value of a sum when the interest rate (opportunity cost) is zero.

2)What is the relationship between the present-value factor and the annuity present-value factor? 3)What will $5,000...

2)What is the relationship between the present-value factor and the annuity present-value factor? 3)What will $5,000 invested for 10 years at 8 percent compounded annually grow to? How many years will it take $400 to grow to $1,671 if it is invested at 10 percent compounded annually? At what rate would $1,000 have to be invested to grow to $4,046 in 10 years? 7)What is the future value of an ordinary annuity of $1,000 per year for 7 years compounded...

1. What is the relationship between present value and future value? 2. Why is compounding on...

1. What is the relationship between present value and future value? 2. Why is compounding on a monthly basis better than compounding on an annual basis? 3. How do we determine the appropriate discount rate to use when finding present value? 4. What do we mean when we refer to an annuity? What is the difference between an annuity and an annuity due?

Which of the following is the best description of the relationship between present value (PV) and...

Which of the following is the best description of the relationship between present value (PV) and future value (FV)? 1) FV = PV + Interest Earned 2) PV = FV + Interest Earned 3) PV + FV = Interest Earned 4) PV = FV

Relationship between future value and present value: Mixed stream. Using the information in the accompanying table,...

Relationship between future value and present value: Mixed stream. Using the information in the accompanying table, answer the questions that follow. Year Cash Flow 0 0 1 800 2 900 3 1000 4 1500 5 2000 a.Determine the present value of the mixed stream of cash flows, using a 5% discount rate. b. Suppose you had a lump sum equal to your answer in part a on hand today. If you invested this sum for 5 years and earned a...

What is the relationship between interest rate (I) and present value (PV)? Are they moving in...

What is the relationship between interest rate (I) and present value (PV)? Are they moving in the same direction, or the opposite direction? Using your answer in part 1 to explain how financial markets react when the Federal Reserve announces interest rate increase (so called "Federal Fund rate"). Will the markets rise or decline? Why do investors/markets react that way? From what we learned in chapter 8, which type of bonds can help wealthy investors to save taxes? Which type...

The relationship between a Net Present Value (NPV) and a discount rate could best be described...

The relationship between a Net Present Value (NPV) and a discount rate could best be described as? Direct Random Stochastic Indirect Indeterminant

Question