Omni Telecom is trying to decide whether to increase its cash dividend immediately or use the funds to increase its future growth rate. Ke 9 Po Price of the stock today D1 = Dividend at the end of the first year D1 = D0 x (1 + g) Op = Dividend today = Required rate of return g = Constant growth rate in dividends Do is currently $2.80, Ke is 12 percent, and g is 5 percent. Under Plan A, Do would be immediately increased to $3.40 and Ke and g will remain unchanged Under Plan B, Do will remain at $2.80 but g will go up to 6 percent and Ke will remain unchanged a. Compute Po (price of the stock today) under Plan A Note Di will be equal to Do x (1+ g) or $3.40 (1.05), Ke will equal 12 percent, and g will equal 5 percent. (Round your intermediate calculations and final answer to 2 decimal places.) Stock price for Plan A b. Compute PO (price of the stock today) under Plan B Note D1 will be equal to Do (1 + g or S2 80 (106). Kewill