year free cash flow

1) 12million

2 )18 million

3) 22 million

4) 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 12% and Conundrum has cash of $ 80 million, debt

of$60 million, and 30 million sharesoutstanding, what isConundrum's expected current shareprice?

A.

$ 12.66

B.

$ 15.58

C.

$9.74

D.

$ 16.06