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7) Gonzales Corporation generated free cash flow of $86 million this year. For the next two years, the company's free cash flow is expected to

7) Gonzales Corporation generated free cash flow of $86 million this year. For the next two years, the company's free cash flow is expected to grow at a rate of 10%. After that time, the company's free cash flow is expected to level off to the industry long-term growth rate of 4% per year. If the weighted average cost of capital is 11% and Gonzales Corporation has cash of $100 million, debt of $275 million, and 100 million shares outstanding, what is Gonzales Corporation's expected current share price?

A) $14.37

B) $11.87

C) $12.49

D) $16.24

Please show financial calculator steps of what to input where, Thanks!

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