A company is expected to pay a dividend of $3 per share next year, and dividends are expected to grow at a constant rate of 5% per year. If the required rate of return is 10%, calculate the intrinsic value of the stock using the Dividend Discount Model (DDM). Discuss the significance of the DDM in stock valuation and its assumptions. Analyze the impact of changes in the growth rate and required rate of return on the intrinsic value. Consider the strategic implications of dividend policy on stock valuation and investor perception. Discuss the limitations of the DDM, particularly for companies with irregular dividend patterns or uncertain growth prospects. Explain how the DDM can be used alongside other valuation models, such as the Price/Earnings (P/E) ratio and the Discounted Cash Flow (DCF) model, to form a comprehensive view of a company’s value.