Question: Multiple Choice Question Consider a company with a P / E ratio of 1 5 , in an industry with an average P / E

Multiple Choice Question
Consider a company with a P/E ratio of 15, in an industry with an average P/E ratio of 20, and the same required return (k) as the industry average. This company is potentially an appropriate addition to an investor's portfolio for which of the following reasons?
Multiple choice question.
The stock could be considered a value investment.
The firm's growth prospects are stronger than average for the industry
The firm's PVGO is lower than the industry average.
The firm's PVGO is higher than the industry average.

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