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Time Warner shares have a market capitalization of $45 billion. The company just paid a dividend of $0.30 per share and each share trades for

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Time Warner shares have a market capitalization of $45 billion. The company just paid a dividend of $0.30 per share and each share trades for $25. The growth rate in dividends is expected to be 6% per year. Also, Time Warner has $10 billion of debt that trades with a yield to maturity of 7%. If the firm's tax rate is 35%, compute the WACC? A. 6.44% B. 7.45% C. 7.79% D. 6.78%

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