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 Te 9 Po =Price of the stock today Di = Dividerd at the end of the first year D1 - Do ( 19) Do = Dividend today Xo = Required rate of return g-Constant growth rate in dividends Dp is currently $2.00, Xe is 10 percent, and is 5 percent. Under Plan A, Do would be immediately increased to $2.20 and Ko and g will remain unchanged. Under Plan B. Do will remain at $2.00 but will go up to 6 percent and will remain unchanged. a. Compute Po (price of the stock today) under Plan A. Note , will be equal to Do 11 ) or $2.20 (105) Ko will equal 10 percent, and g will equal 5 percent. (Round your intermediate calculations and final answer to 2 decimal places.) . Stock price for Plan A b. Compute Po (price of the stock today) under Plan B. Note D, will be equal to Do 1 + 91 or $2.00 (1.06). Xe will be equal to 10 percent, and g will be equal to 6 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