ABC Company has estimated its free cash flows for the next four years:

Year 1

$5,000,000

Year 2

$5,100,000

Year 3

$5,500,000

Year 4

$5,750,000

After the fourth year, free cash flows are expected to grow each year at a rate of 4%. The company's cost of equity capital is 13%. Assuming that ABC Company has 8 million outstanding common shares, what is the intrinsic price of one ABC common share using the free-cash-flow method?

a. $6.87

b. $7.06

c. $5.50

d.$10.28