Problem:
Conundrum Mining is expected to generate $12 million, $18 million, $22 million and $26 million in free cash flows over the next four years, after which they are expected to grow at a rate of 5% 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 shares outstanding,
Required:
Question 1: What is Conundrum's expected current share price?
A) $10.84
B) $13.72
C) $16.16
D) $16.25
Note: Explain all steps comprehensively.