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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

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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 $30. The growth rate in dividends is expected to be 8% per year. Also, Time Warner has $10 billion of debt that trades with a yield to maturity of 8%. If the firm's tax rate is 25%, what is the WACC? A. 7.85% B. 8.27% C. 7.03% D. 9.09%

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