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Assume Time Warner shares have a market capitalization of $60 billion. The company is expected to pay a dividend of $0.45 per share and
Assume Time Warner shares have a market capitalization of $60 billion. The company is expected to pay a dividend of $0.45 per share and each share trades for $40. The growth rate in dividends is expected to be 8% per year. Also, Time Warner has $20 billion of debt that trades with a yield to maturity of 7%. If the firm's tax rate is 25%, compute the WACC?
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Matlab An Introduction with Applications
Authors: Amos Gilat
5th edition
1118629868, 978-1118801802, 1118801806, 978-1118629864
