Peabody Mining Company's common stock is selling for $50 the day before the stock goes ex-dividend. The annual dividend yield is 5.7 percent, and dividends are distributed quarterly. Ignore taxes. a. Based solely on the impact of the cash dividend, by how much should the stock go down on the ex-dividend date? Note: Do not round intermediate colculations and round your answer to 2 decimal places. b. What will the new price of the stock be? Note: Do not round intermediate calculations and round your answer to 2 decimal places. Omni Telecom is trying to decide whether to increase its cash dividend immediately or use the funds to increase its future growth fate. P0=Kn8A P0= Price of the stock today DA= Dividend at the end of the first year D=D(1+g) D0= Olvidend today K= Required rate of return g= Constant growth rate in dividends D0 is currently $2.10,Ke is 14 percent, and g is 6 percent. Under Plan A D0 would be immediately increased to $2.60 and K e and g will remain unchanged Under Plan B,D1 will remain at $2.10 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 $2.60(1.06). Ke will equal 14 percent, and g will equal 6 percent. Note: Round your intermediate calculations and final answer to 2 decimal places. b. Compute R0 (price of the stock today) under Plan B. Note D1 will be equal to D0(1+g) or $2.10(1.07), K, will be equal to 14 petcent, and g will be equal to 7 percent. Note: Round your intermediate calculations and final answer to 2 decimal places. c. Which plan will produce the higher value? Plan. B Plan A