Year1234

Free Cash

Flow$12

million$18 million$22 million$26 millionConundrum Mining is expected to generate the above free cash flows over the next four years, 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

$80

million, debt of

$60

million, and 30 million shares outstanding, what is Conundrum's expected current share price?

A.

$14.31

B.

$8.67

C.

$13.88

D. $11.27