## Math Problem Statement

## Solution

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## Math Problem Analysis

### Mathematical Concepts

Dividend Discount Model (DDM)

Present Value

Perpetuity

Discount Rate

### Formulas

Present Value of Dividends: PV = D / (1 + r)^t

Perpetuity Formula: P2 = D3 / r

Total Present Value: P0 = PV1 + PV2 + P2

### Theorems

Time Value of Money

Dividend Discount Model

### Suitable Grade Level

Undergraduate finance or advanced high school

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