Valuation Using the Dividend Discount Model

In equity valuation, the Dividend Discount Model (DDM) is a widely used method to estimate the value of a company’s stock based on the theory that a stock is worth the sum of all its future dividend payments discounted back to their present value.

If a company pays a constant annual dividend of $2 per share and the discount rate is 10%, what is the value of the stock according to the Dividend Discount Model?