(One-period pricing. Recall that since stocks have really long lives, in the video we imagined owning a stock for only one period. In this simple, yet powerful scenario, today's stock price is the PV of next year's dividend and next year's stock price. The formula was covered in class.) The stock for TM Consulting, and all-equity firm, is currently trading at $31 per share, after just having paid a $1.70 per share dividend. Management has not announced their specific dividend amount for next year, but they insist that they will pay a dividend. If analysts project the stock price to be $33.90 after next year's dividend is paid out, and the equity cost of capital (also the discount rate for equity) is 15% for this firm, the expected dividend (for t = 1) must be:

A. $1.86

B. 1.77

C. 1.96

D. 1.75