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You work as a capital market analyst in a brokerage house and you want to determine the value of the shares of the company DNT,

You work as a capital market analyst in a brokerage house and you want to determine the value of the shares of the company "DNT, SAB de CV" to recommend to your clients the possible purchase of the share at its current price of $80. The analyst estimates that the stock's dividend payment for the next four years will be $4.80, $5.40, $6.10, and $7.00, respectively; likewise, he forecasts that beginning in the fourth year, the dividend will grow at a constant rate of 12% per year.

If the required return in the market, given the level of risk for these shares, is 18%, determine whether or not to recommend their purchase to the brokerage firm's clients.

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