Gonzales Corporation generated free cash flow of

$83

million this year. For the next two years, the company's free cash flow is expected to grow at a rate of

9%.

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

$80

million, debt of

$300

million, and 100 million shares outstanding, what is Gonzales Corporation's expected current share price?

A.

$14.70

B.

$13.00

C.

$11.31

D.

$10.74