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According to the dividend discount model (DDM), today's share price 0 can be written in two different ways: (1) 0 =1+1 1+ (2) 0 =

According to the dividend discount model (DDM), today's share price 0 can be written in two different ways: (1) 0 =1+1 1+ (2) 0 = 1 Explain how these formulas are related and please show the connection mathematically and/or by sketching a cash flow on a timeline.

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