Maple Drinks Corp.has just announced a dividend of $0.80 for this year and $0.835 for the next year.Dividends are expected to grow at a constant rate indefinitely.What is the current share price if the required return is 13.1%?

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The correct answer is A because the current share price is $7.12. This can be calculated using the dividend discount model, which states that the current share price is equal to the present value of all future dividends. In this case, the required return is 13.1%, the dividend for this year is $0.80, and the dividend for the next year is $0.835. Using these values, we can calculate the current share price as follows:Current share price = $0.80 / (0.131 - 0.03) = $7.12