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Time Warner shares have a market capitalization of $60 bilion. The company is expected to pay a dividend of $0.30 per share and each share
Time Warner shares have a market capitalization of $60 bilion. The company is expected to pay a dividend of $0.30 per share and each share trades for $40. The growh rate in dividends is expecled to be 8% per year. Also, Time Warner has $20 bilion of debt that trades with a ylold to maturity of 9%. If the firm's tax rate is 25%, what is the Wicc. A. 8.25% B. 701% c. 0.06% D. 784N
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