Omni Telecom is trying to decide whether to increase its cash dividend immediately or use the funds to increase its future growth rate. D1 : g = = Po = Price of the stock today D1 = Dividend at the end of the first year Di Do * (1 + g) Do = Dividend today Ke = Required rate of return g=Constant growth rate in dividends - Do is currently $2.90, Ke is 9 percent, and g is 6 percent. Under Plan A, Do would be immediately increased to $3.30 and Ke and g will remain unchanged. Under Plan B, Do will remain at $2.90 but g will go up to 7 percent and Ke will remain unchanged. a. Compute Po (price of the stock today) under Plan A. Note Du will be equal to Do * (1 + g) or $3.30 (1.06). Ke will equal 9 percent, and g will equal 6 percent. (Round your intermediate calculations and final answer to 2 decimal places.) Stock price for Plan A $ 106.00