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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

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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 trades for $20. The growth rate in dividends is expected to be 9% per year. Also, Time Warner has $20 billion of debt that trades with a yield to maturity of 9%. If the firm's tax rate is 35%, compute the WACC? 4. A. 9.58% OB. 8.57% ?. 9.08% D. 10.09%

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