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 - g = = = = Price of the stock today Dj = Dividend at the end of the first year D1 Do X (1 + g) Do = Dividend today Ke = Required rate of return g= Constant growth rate in dividends = Do is currently $3.50, Ke is 9 percent, and g is 5 percent. Under Plan A, Do would be immediately increased to $4.00 and Ke and g will remain unchanged. Under Plan B, Do will remain at $3.50 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 Du will be equal to Do * (1 + g) or $4.00 (1.05). Ke will equal 9 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 X (1 + g) or $3.50 (1.06). Ke will be equal to 9 percent, and g will be equal to 6 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