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Time Warner shares have a market capitalization of $60 billion. The company is expected to pay a dividend of $0.50 per share and each share
Time Warner shares have a market capitalization of $60 billion. The company is expected to pay a dividend of $0.50 per share and each share trades for $20. The growth rate in dividends is expected to be 7% per year. Also, Time Warner has $20 billion of debt that trades with a yield to maturity of 8%. If the fim's tax rate is 25%, compute the WACC? OA. 7.33% O B. 7.76% O C. 8.63% OD 8.19%
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Public Finance
Authors: Harvey S. Rosen
3rd Edition
0256083762, 978-0256083767
