Company D pays an annual dividend of $2.50 per share, which is expected to grow at a rate of 4% per year. The required rate of return is 10%.

Requirements:

1. Calculate the value of the stock using the Dividend Discount Model (DDM).
2. Determine the expected dividend for the next three years.
3. Compute the stock price if the growth rate increases to 5%.
4. Assess the impact on the stock price if the required rate of return decreases to 8%.