Use FCFE to determine the value of a company's stock price when last year's sales were $5.25/share, sales growth is expected to be 3.5% for the next three years and 2.00% after that, profit margin is expected to remain around 22%, return on equity has been averaging 14%, and the required rate of return is 9.25%. What is the PVGO and does it constitute a large risk to the stock price?

Answer rating: 100% (QA)

PVGO present value of growth opportunitie... View the full answer