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 = DO * (1 + g) Do = Dividend today Ke = Required rate of return g=Constant growth rate in dividends Do is currently $3.00, ke is 11 percent, and g is 6 percent. Under Plan A, D, would be immediately increased to $3.50 and Ke and g will remain unchanged. Under Plan B, Do will remain at $3.00 but g will go up to 7 percent and he will remain unchanged. a. Compute Po (price of the stock today) under Plan A. Note D1 will be equal to Do x (1 + g) or $3.50 (1.06). Ke will equal 11 percent, and gwill equal 6 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 D1 will be equal to Do x (1 + g) or $3.00 (1.07). Ke will be equal to 11 percent, and g will be equal to 7 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? Plan A O Plan B