Clearwater Ltd. Is trying to decide whether to pay a dividend to their shareholders or retain and reinvest cash in the amount of $400,000. The company has 300,000 shares outstanding and their earnings for the year amounted to $800,000. Their P/E ratio is currently 12 and is expected to remain the same if the funds are paid out in the form of dividends. As an alternative the funds could be retained and reinvested at 15% in which case the P/E ratio would increase by 16%. Advise Clearwater Ltd on what action they should take. Show all calculations. (8 marks)