Assume Time Warner shares have a market capitalization of $60 billion. The company is expected to pay a dividend of $0.30 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 8%. If the firms tax rate is 35%, compute the WACC? A) 7.11%, B) 6.40%, C) 6.05%, D) 6.76%