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A firm has earnings of $1.43 this year and a P/E ratio of 20. It is currently expected to grow at 2% per year forever.

A firm has earnings of $1.43 this year and a P/E ratio of 20. It is currently expected to grow at 2% per year forever. What would its new P/E ratio be if it could increase this growth to 4.5% per year without a change in its cost of capital?

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