Suppose we consider a firm with positive net present value of growth opportunities. we saw that the price of the stock could be expressed as follows: p=eps/i + npvgo if we divide each side of the equation by the firm’s earnings per share, we arrive at a p/e ratio for which we could use to compare firms which have similar p/e multiples. however, this begs the question of just how comparable these firms are to each other. explain how each of those determinants plays a part across supposedly similar firms.