Roy's Welding Supplies common stock sells for $22 a share and pays an annual dividend that increases by 5 percent annually. The market rate of return on this stock is 9 percent. What is the amount of the last dividend paid?

a.		$0.88
b.		$0.81
c.		$0.92
	d.	$0.84

2.

Winter Time Adventures is going to pay an annual dividend of $2.50 a share on its common stock next week. This year, the company paid a dividend of $2.40 a share. The company adheres to a constant rate of growth dividend policy. What will one share of this common stock be worth 11 years from now if the applicable discount rate is 8.0 percent?

a.		$98.10
b.		$94.47
c.		$110.50
d.		$102.18