________ 6. The Good Life stock is selling for $42 a share and has a current dividend yield of 3.8 percent. What is the

amount of the last dividend paid if the dividend growth rate is 2.7 percent?

a. $1.414 b. $1.487 c. $1.554 d. $1.596

________ 7. The Galaxie paid a dividend of $1.40 per share last year and has a policy of increasing its dividend by 3

percent annually. How much are you willing to pay to purchase 200 shares of this stock considering that

you require an 11 percent rate of return?

a. $2,545 b. $2,895 c. $3,605 d. $4,665