Consider four different stocks all of which have a required return of 18 percent and a most recent dividend of $2.80 per share. Stocks W X and Y are expected to maintain constant growth rates in dividends for the foreseeable future of 10 percent 0 percent and 5 percent per year respectively. Stock Z is a growth stock that will increase its dividend by 20 percent for the next two years and then maintain a constant 12 percent growth rate thereafter.