Omni Telecom is trying to decide whether to increase its cash dividend immediately or use the funds to increase its future growth rate. P0=KegD1 P0= Price of the stock today D1= Dividend at the end of the first year D1=D0(1+g) D0= Dividend today Ke= Required rate of return g= Constant growth rate in dividends D0 is currently $2.80,Ke is 12 percent, and g is 6 percent. Under Plan A, D0 would be immediately increased to $3.20 and Ke and g will remain unchanged. Under Plan B, D0 will remain at $2.80 but g will go up to 7 percent and Ke will remain unchanged. a. Compute P0 (price of the stock today) under Plan A. Note D1 will be equal to D0(1+g) or $3.20(1.06).Ke will equal 12 percent, and g will equal 6 percent. (Round your intermediate calculations and final answer to 2 decimal places.) Answer is complete but not entirely correct. \begin{tabular}{|l|ll|} \hline Stock price for Plan A & $36.40 \end{tabular} b. Compute P0 (price of the stock today) under Plan B. Note D1 will be equal to D0(1+g) or $2.80(1.07).Ke will be equal to 12 percent, and g will be equal to 7 percent. (Round your intermediate calculations and final answer to 2 decimal places.) c. Which plan will produce the higher value? Plan A Plan B