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Time Warner shares have a market capitalization of $65 billion. The company just paid a dividend of $0.45 per share and each share trades for

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Time Warner shares have a market capitalization of $65 billion. The company just paid a dividend of $0.45 per share and each share trades for $45. The growth rate in dividends is expected to be 8% 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 25%, compute the WACC? A. 9.38% B. 8.11% C. 8.53% D. 9.81%

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