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P/E ratios are in the anticipated constant growth rate (g) for a constant growth stock. In other words, if investors revise their expectations so that

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P/E ratios are in the anticipated constant growth rate (g) for a constant growth stock. In other words, if investors revise their expectations so that "g" is higher for a stock than it used to be, the stock price should a) Increasing, rise Ob) Decreasing, fall O c) Unchanging, stay the same

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