Question: please answer asap 1. Omni Telecom is trying to decide whether to increase its cash dividend or use the funds to increase its future growth

1. 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 (Chapter 10 ) for purposes of analysis. The current values are the following: DO=$1.50Ke=1096g=456 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 will increase to 6%. a. Compute the current price under Plan A. b. Compute the current price under Plan B. c. Which plan produced the higher value? Suggest why this occurred Using these key facts, calculate the dividend vield and P/E ratio. a. Compute the current price under Plan A. b. Compute the current price under Plan B. c. Which plan produced the higher value? Suggest why this occurred
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