PLEASE HELP ME CALCULATE A - C. THANK YOU . I WILL GIVE U A THUMBS UP

Omni Telecom is trying to decide whether to increase its cash dividend immediately or use the funds to increase its future growth rate. 01 P0 = Ke ' 9 p0 = Price of the stock today 121 = Dividend at the end of the rst year D1 = D0 X (l + Q) D0 = Dividend today Xe = Required rate of return 9: Constant growth rate in dividends D0 is currently $3.00, K5. is 11 percent, and g is 6 percent. Under Plan A, Do would be immediately increased to $3.50 and Ice and gwill remain unchanged. Under Plan B, D0 will remain at $3.00 but 9 will go up to 7 percent and Re will remain unchanged. a. Compute P0 (price of the stock today) under Plan A. Note 121 will be equal to 00 x (1 + g) or $3.50 (1.06). Ke will equal 11 percent, and gwill equal 6 percent. (Round your intermediate calculations and nal answer to 2 decimal places.) Stock price for Plan A _ b. Compute P0 (price ofthe stock today) under Plan B. Note D1 will be equal to D0 x (1 + g) or $3.00 (1.07). Ke will be equal to 11 percent, and 9 will be equal to 7 percent. (Round your intermediate calculations and nal answer to 2 decimal places.) Stock price for Plan B _ c. Which plan will produce the higher value? ' Plan A ' Plan B