A stocks price is estimated using Constant-growth Dividend Discount Model (formula below):

where P0 is the current price, D1 is the divided at time period 1, ke is the cost of equity and g is the growth rate. After a positive announcement, the growth rate g estimate increased (new growth rate g > g) without changes in forecast of D1. This event leads to an increase in price, P0 > P0.

We conclude that: because of the good news, the expected return for new investors (buying at the new price P0) is now higher.

Is the above statement true or false? Give explanations.