Question

The Boeing Company (BA) has a trailing P/E of 24.0 and a forward P/E of 18.0....

The Boeing Company (BA) has a trailing P/E of 24.0 and a forward P/E of 18.0. The current stock price is $135.00. BA’s required rate of return is 9.0%. What is BA’s present value of growth opportunities (PVGO)?

A.

$51.67

B.

$72.50

C.

$12.15

D.

$22.50

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Answer #1

= 18 Current stock Price = 135 Required return (Re) = 9% We know that, PYGO = Current stock Price - Again, po - 18 G= P = Cur

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