At time 0, a firm is valued at $1,000 and has no debt. Its equity consists of 100 common shares worth $10 each. The expected rate of return for the firm is 5% in time 1 and 6% in time 2.

Can you verify that the share price at time 0, $10, is equal to the present value of all future dividends (& liquidated values)? Assume that the firm will liquidate itself at the end of time 2.