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Omni Telecom is trying to decide whether to increase its cash dividend immediately or use the funds to increase its future growth rate. D. Po

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Omni Telecom is trying to decide whether to increase its cash dividend immediately or use the funds to increase its future growth rate. D. Po Ko g Price of the stock today Po the end of the first year D1 Dox (1 Do Dividend today Ka Required rate of return g = Constant growth rate in dividends Do is currently $3.20, Ke is 11 percent, and g is 6 percent. Under Plan A, Do would be immediately increased to $3.60 and Ke and g will remain unchanged. Under Plan B, Do will remain at $3.20 but g will go up to 7 percent and Ke Will remain unchanged. a. Compute Po (price of the stock today) under Plan A. Note D1 will be equal to Do (1 calculations and final answer to 2 decimal places.) g) or $3.60 (1.06). Ke will equal 11 percent, and g will equal 6 percent. (Round your intermediate Stock price for Plan A b. Compute Po (price of the stock today) under Plan B. Note D1 will be equal to Dox (1g) or $3.20 (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

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