Describe the discounted dividend model with the help of an example.

The Discounted Dividend Model (DDM) is a fundamental method used in Security Analysis and Portfolio Management to value a stock based on the present value of its expected future dividends. This model assumes that a stock's intrinsic value is the sum of the present values of all expected future dividends, discounted at the required rate of return. It is particularly useful for valuing dividend-paying stocks and helps investors determine whether a stock is overvalued or undervalued.

### Formula for the Discounted Dividend Model
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