Howell plc, a firm located in Glasgow, has recently launched a new product, which is proving to be very popular. As a result, the company is expanding its market into London and expecting rapid growth. Howell plc has 1.5 million 1 authorised shares of which 1 million have been issued. Shareholders expect a return of 12% on their investment. A dividend of 800,000 has just been paid. As a financial analyst, you have predicted the following three scenarios on future dividend growth for Howell plc's investors:

(1)The dividend is expected to experience zero growth, due to the failure of expansion into the new market. (2)The dividend is expected to grow by 6.25% per annum for the foreseeable future. (3)The company expects that this dividend will increase to 850,000 next year and continue to grow at this rate for the following four years (from year 2 to year 5). In year 6, it is expected that the growth rate will fall to 4% because of company investment plans. Required: (i)Calculate the share price assuming scenario (1) that the dividend is expected to experience zero growth. (ii) Calculate the share price assuming scenario (2) that the dividend is expected to grow by 6.25% per annum for the foreseeable future. (iii)Calculate the share price assuming scenario (3) holds. (b)"Dividend policy is the determination of the proportion of profits paid out to shareholders. One of the issues to be addressed is whether shareholder wealth can be enhanced by altering the pattern of dividends ... A stable dividend growth rate is better than one which varies from year to year depending on the firm's internal need for funds ... Most firms recognise the importance of endeavouring to maintain ... stable dividends payment - providing more certainty for investors." (Arnold and Lewis, 2019) Required: Critically discuss the above statement.