6) Assume Time Warner shares have a market capitalization of $40 billion. The company is expected to pay a dividend of $0.25 per share and each share trades for $40. The growth rate in dividends is expected to be 7% per year. Also, Time Warner has $20 billion of debt that trades with a yield to maturity of 9%. If the rm's tax rate is 40%, what is the WACC? A) 5.85% B) 6.88% C) 6.54% D) 7.57%