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a. Compute Po (price of the stock today) under Plan A. Note D will be...

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a. Compute Po (price of the stock today) under Plan A. Note D will be equal to Do *(1 + g) or $4.00 (1.05). Ke will equal 9 percent, and 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 will be equal to De *(1 + 9) or $3.50 (1.06). Ko will be equal to 9 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 highedvalue? Plan A Plan B

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