Return to ques Omni Telecom is trying to decide whether to increase its cash dividend immediately or use the funds to increase its future growth rate. DY Po - Po - Price of the stock today D1 - Dividend at the end of the first year D1 - Do (1+) Do - Dividend today Ko - Required rate of return g=Constant growth rate in dividends Do is currently $2.20, Ke Is 12 percent, and gis 4 percent Under Plan A, Do would be immediately increased to $2,80 and X, and will remain unchanged, Under Plan B. Do will remain at $2.20 but will go up to 5 percent and K, will remain unchanged. a. Computer (price of the stock today) under Plan A. Note 2, will be equal to Do 11 + 91 or $2.80 (1,04). Ke will equal 12 percent, and g will equal 4 percent. (Round your intermediate calculations and final answer to 2 decimal places.) Answer is complete but not entirely correct. Stock price for Plan A 78.00 X Rerum to 9 Answer is complete but not entirely correct. Stock price for Plan A $ 78.00 b. Computer (price of the stock today) under Plan B. Note D, will be equal to Do - (1 + y) or $2.20 (1.05). K will be equal to 12 percent, and g will be equal to 5 percent. (Round your intermediate calculations and final answer to 2 decimal places.) Answer is complete but not entirely correct. Stock price for Pian B 91.00 $ c. Which plon will produce the higher value? Plan BO Plan A