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Problem set 0. Alpha Corp's earnings and dividends are growing at 15% per year. Beta Corp's earnings and dividends are growing at 8% per year.

Problem set 0.3. Alpha Corp's earnings and dividends are growing at 15% per year. Beta Corp'searnings and dividends are growing at 8% per year. The companies' assets, earnings, anddividends pre share are now (at date 0) exactly the same. Yet Present Value of GrowthOpportunities (PVGO) accounts for a greater fraction of Beta Corp's stock price. How is thispossible?

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