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Time Warner shares have a market capitalization of $60 billion. 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 billion. The company is expected to pay a dividend of $0.30 per share and each share trades for $20. The growth rate in dividends is expected to be 5% 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 35%, what is the WACC? O A. 6.22% OB. 5.91% O C. 6.84% O D. 5.29%
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