Free Cash Flows for Next Year Are Expected to Be

Free cash flows for next year are expected to be $500 million at Banana Inc. They are expected to grow at 4% per year. Banana's cost of capital is 11%. What is terminal value of Banana?

A) $0.5 billion.
B) $0.6 billion.
C) $4.5 billion.
D) $7.1 billion.
E) $12.5 billion.