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A mining company, with a stable growth of 1%, has net income of $50 million and the market value of its equity is $250 million.

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A mining company, with a stable growth of 1%, has net income of $50 million and the market value of its equity is $250 million. The company decides to increase its dividend payout ratio by 2%. What will most likely happen to the company's price-to-earnings (P/E) ratio? O The P/E ratio will increase O The P/E ratio will remain unchanged The P/E ratio will decrease

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