Penarth plc is expected to produce earnings per share of 10.00 next year and it is anticipated that the company will pay a dividend of 60 per cent of its earnings as dividends. The residual earnings will be retained to finance investment in the expansion of the company's assets. The growth rate in earnings as a result of the investment of retentions is expected to be 10 per cent per annum. The company is anticipated to maintain paying out of 60 per cent of earnings as dividends, with 40 per cent of earnings being retained for investment into the future indefinitely into the future. But it is also anticipated that after 4 years the growth rate of earnings will fall to 5 per cent per annum as a result of increasing competition in Penarth's markets. It is however assumed that the 5 per cent growth rate can be maintained indefinitely into the future. The required rate of return in the market for the shares in Penarth has been estimated at 12 per cent. Determine a value for a share the company and the rate of returns on the company's investments underlying the growth rates of 10 per cent and 5 per cent