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Time Warner shares have a market capitalization of $50 billion. The company is expected to pay a dividend of $0.45 per share and each share

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Time Warner shares have a market capitalization of $50 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 6% per year. Also, Time Warner has $15 billion of debt that trades with a yield to maturity of 7%. If the firm's tax rate is 35%, what is the WACC? A. 6.53% B. 7.18% C. 6.2% D. 5.55%

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