Omni Telecom is trying to decide whether to increase its cash dividend immediately or use the funds to increase its future growth rate. D1 Po = Price of the stock today D1 Dividend at the end of the first year D1 - Do * (1 + 9) Do = Dividend today Ke = Required rate of return g=Constant growth rate in dividends Do is currently $3.20, ko is 11 percent, and gis 6 percent Under Plan A, D, would be immediately increased to $3.60 and X, and g will remain unchanged. Under Plan B, D, will remain at $3.20 but g will go up to 7 percent and will remain unchanged. a. Compute po (price of the stock today) under Plan A. Note D, will be equal to Do *(1 + 9) or $3.60 (1.06). K, will equal 11 percent, and g will equal 6 percent. (Round your intermediate calculations and final answer to 2 decimal places.) Stock price for Plan b. Computer (price of the stock today) under Plan B. Note , will be equal to Do 1 + ) or $3.20 (1.07). x 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 Do is currently $3.20, Ke Is 11 percent, and gis 6 percent Under Plan A, D, 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 P, (price of the stock today) under Plan A. Note D, will be equal to Do *(1 + g) or $3.60 (1.06). Ke will equal 11 percent and g will equal 6 percent. (Round your intermediate calculations and final answer to 2 decimal places.) Stock price for Plan A b. Compute P, (price of the stock today) under Plan B. Note , will be equal to Do *(1 + g) or $3.20 (1.07). K. Will be equal to 11 percent, and will be equal to 7 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? Plan A Plan B