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Time Warner shares have a market capitalization of $70 billion. The company is expected to pay a dividend of $0.45 per share and each share

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Time Warner shares have a market capitalization of $70 billion. The company is expected to pay a dividend of $0.45 per share and each share trades for $30. 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 8%. If the firm's tax rate is 25%, compute the WACC? A. 9.5% B. 8.55% C. 9.03% D. 8.08%

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