ARBONTEX distributed $2 in dividends to its shareholders at the end of 1982 and $4 at the end of 1988. Since we are at the beginning of 1989, we are asked to calculate the price of this stock knowing that dividends will continue to increase annually in the same way as in the past for another two years and be limited to an annual growth of 5% thereafter.

The market is paying 15% for this share class.