It is 31 January 2022 and the managers of Carport Plc. are considering a change in the company's dividend policy. Earnings per share for 2021 for the company were 70p, and the finance director has said that he expects this to increase to 75p per share for 2022. The increase in earnings per share is in line with market expectations of the company's performance. The pattern of recent dividends, which are paid on 31 December is as follows: Year 2021 2020 2019 2018 2017 2016 The managing director has proposed that 65 per cent of earnings in 2022 and subsequent years should be retained for investment in new product development. It is expected that, if this proposal is accepted, the dividend growth rate will be 10.5 per cent. Carport PLC's cost of capital is estimated to be 15 per cent. Dividend per Share (pence) 36.0 33.7 31.6 30.2 28.6 27.2 Calculate the share price of Carport PLC in the following circumstances. (a) The company decides not to change its current dividend policy. (b) The company decides to change its dividend policy as proposed by the managing director and announces the change to the market. (c) Does the dividend policy adopted by a company impact upon the market value of that company? Academic findings within this area have provided conflicting evidence with two distinct theoretical schools of thought; one supporting dividend relevance and the other dividend irrelevance. Critically analyse and evaluate the differing theoretical viewpoints, ensuring the response is developed through incorporating relevant academic research that has been performed within this area.