Hi-Tek plans to pay a $6 per share dividend one year from today, and will increase the dividend by 4 percent per year forever. What is the current share price if the required return on this stock is 16 percent

The current share price if the required return on this stock is 16 percent is $50.

Explanation:

price = dividend next year / (required rate of return - growth rate)

= 6 / (16% - 4%)

= 50

Therefore, The current share price if the required return on this stock is 16 percent is $50.