A stock's price is estimated using Constant-growth Dividend Discount Model (formula below) Po = Di ke - 9 where PO 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 negative announcement, the growth rate g estimate decreased (new growth rate g'>g) without changes in forecast of D1. This event leads to a drop in price, PO' > PO. We conclude that: because of the good news, the expected return for new investors (buying at the new price PO') is now higher. Is the above statement true or false? Give explanations. I!! III % 83