Omni Telecom is trying to decide whether to increase its cash dividend immediately or use the funds to increase its future growth rate. Po = D1 KE 9 Po = Price of the stock today D1 = Dividend at the end of the first year D1 - De x (1 + g) De = Dividend today Ke= Required rate of return g=Constant growth rate in dividends De is currently $2.50, ke is 10 percent, and g is 4 percent. Under Plan A. De would be immediately increased to $2.70 and Ke and g will remain unchanged. Under Plan B, D, will remain at $2.50 but g will go up to 5 percent and Ke will remain unchanged. a. Compute Pe (price of the stock today) under Plan A. Note D1 will be equal to Do x (1 + g) or $2.70 (1.04). Ke will equal 10 percent, and g will equal 4 percent. (Round your intermediate calculations and final answer to 2 decimal places.) Stock price for Plan A b. Compute Pe (price of the stock today) under Plan B. Note Du will be equal to Do * (1 + g) or $2.50 (1.05). Ke will be equal to 10 percent, and g will be equal to 5 percent. (Round your intermediate calculations and final answer to 2 decimal places.) Stock price for Plan B c. Which plan will produce the higher value? O Plan A O Plan B