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Assume Time Warner shares have a market capitalization of $40 billion. The company is expected to pay a dividend of $0.4 per share and each

Assume Time Warner shares have a market capitalization of $40 billion. The company is expected to pay a dividend of $0.4 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 9.8%. If the firm's tax rate is 40%, what is the WACC?

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