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Time Warner shares have a market capitalization of $ 5 5 billion. The company just paid a dividend of $ 0 . 2 5 per

Time Warner shares have a market capitalization of $55 billion. The company just paid a dividend of $0.25 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 25%, compute the WACC?
A.7.8%
B.6.44%
C.6.78%
D.7.46%
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