Question
Time Warner shares have a market capitalization of $ 40 billion. The company is expected to pay a dividend of $ 0.35 per share and
Time Warner shares have a market capitalization of $ 40 billion. The company is expected to pay a dividend of $ 0.35 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 firm's tax rate is 30%, what is the WACC?
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Real Estate Investment Strategies Structures Decisions
Authors: David Hartzell, Andrew E. Baum
2nd Edition
1119526094, 978-1119526094
