Year 1 2 3 4

Free Cash Flow $12 million $18 million $22 million $26 million

Conundrum Mining is expected to generate the above free cash flows over the next fouryears, after which they are expected to grow at a rate of 4% per year. If the weighted average cost of capital is 13% and Conundrum has cash of $90 million, debt of $70 million, and 30 million sharesoutstanding, what isConundrum's expected current shareprice?

A.

$11.27

B.

$13.88

C.

$8.67

D.

$14.31