Question: Omni Telecom is trying to decide whether to increase its cash dividend or use the funds to increase its future growth rate. It will use

Omni Telecom is trying to decide whether to increase its cash dividend or use the funds to increase its future growth rate. It will use the dividend valuation model for purposes of analysis. The current values are the following: De $1.50; Ke = 10%; g = 4% Under Plan A, the dividend (D1) will be increased to $1.80 with Ke and g unchanged. Under Plan B, the dividend (D1) will remain at $1.50, Ke will remain unchanged, but g vill increase to 6%. Compute the current price under Plan A. (Do not round intermediate lculations. Round the final answer to the nearest whole dollar.) rent price $ a. Compute the current price under Plan A. (Do not round intermediate calculations. Round the final answer to the nearest whole dollar.) Current price $ b. Compute the current price under Plan B. (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Current price $ c. Which plan produced the higher value? O Plan B Plan A
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