Analysts Expect a Stock to Be Selling for $22 in One

Analysts expect a stock to be selling for $22 in one year. It is also expected to pay a $1 dividend during the year. If you require a 15% return on this kind of investment, what is the most you can pay for the stock today?

A) $21.00
B) $18.70
C) $20.00
D) None of the above