Handy Craft has just paid the dividends and the stock currently sells for $53 a share at a required return of 14 percent

The current stock price, P0 = $53

The stock price one year from now = $56.18

First, let's find the growth rate in dividends (g)

g = The stock price one year from now/The current stock price - 1

g = 56.18/53 - 1

g = 1.06 - 1

g = 0.06

The current stock price is given by:

P0 = D0 * (1 + g)/(r - g)

Where,

P0 = 53

D0 = Dividend just paid

g = 0.06

r = required rate of return

r = 14% = 0.14

Using these values...

53 = D0 * (1 + 0.06)/(0.14 - 0.06)

53 = D0 * 1.06/0.08

53 = D0 * 13.25

D0 = 53/13.25

D0 = $4

The amount of dividend Handy Craft just paid is $4