A company is planning to distribute a dividend of $3 per share next year. The dividends are expected to grow at a constant rate of 5% per year. The required return on the stock is 10%.

Requirements:

1. Calculate the value of the stock using the Dividend Discount Model (DDM).
2. Determine the impact on stock value if the growth rate changes to 6%.
3. Evaluate the stock price if the required return increases to 12%.
4. Assess the implications of a change in dividend policy on the company’s valuation.