(Solved): 1. Using the dividend discount model you decide the shares of company X are worth $50 today. Compan ...

1. Using the dividend discount model you decide the shares of company X are worth $50 today. Company X is a privately held and medium-sized firm in the food service industry. Your friend, says Company X shares should only be worth $30 because company Y - a similar but publicly traded firm has $30 as its current price. Comment on the difference between you and your friend's price for Company X stock. Who is correct?