Omni Telecom is trying to decide whether to increase its cash dividend immediately or use the funds to increase its future growth rate. Po - Di Ke-9 Pe - Price of the stock today D -- Dividend at the end of the first year D-O (1) Do Dividend today Ke Required rate of return g Constant growth rate in dividends Og is currently $2.50. Kis 11 percent, and gis 6 percent Under Plan A. De would be immediately increased to $3.00 and K, and will remain unchanged Under Plan B. Do will remain at $2.50 but will go up to 7 percent and Ke will remain unchanged. a. Compute Pe price of the stock today) under Plan A Note 0, will be equal to De (1) or $3.00 (106). Ke will equal 11 percent, and will equal 6 percent (Round your intermediate calculations and final answer to 2 decimal places.) Stock price for Plan A b. Compute Pe (price of the stock today) under Plan B Note 0, will be equal to Do (1+y) or $250 (1.07) Ke 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 c. Which plan will produce the higher value? Plan A Pion B