A mining company, with a stable growth of 5%, has net income of $50 million and market value of equity of $250 million. A decrease in the risk- free rate causes the cost of equity to decrease by 2%. Because of its reinvestment policy, the firm is now forced to decrease its dividend payout ratio by 2%. What will happen to its price-to-earnings (P/E) ratio? The price-to-earnings ratio will remain unchanged The price-to-earnings ratio will increase O The price-to-earnings ratio will decrease