Exercise $1.$ Suppose that the stock of a mining company X is currently trading on the market at $111$ per

share. Suppose that there are no commission fees on transactions. This mining company is expected to

pay a dividend of $3$ per share exactly in a year and a dividend of $4$ per share exactly in two years from

now. Suppose that you expect the market price of this company's stock to be $120$ exactly in two years

from now. Using the Dividend Discount Model, estimate the present value of this mining company's stock

and justify whether you would or wouldn't invest in this stock if your required rate of $($annual$)$ return on this

type of stock is $12\%?$