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Time Warner shares have a market capitalization of $80 billion. The company is expected to pay a dividend of $0.35 per share and each
Time Warner shares have a market capitalization of $80 billion. The company is expected to pay a dividend of $0.35 per share and each share trades for $20. The growth rate in dividends is expected to be 7% per year. Also, Time Warner has $15 billion of debt that trades with a yield to maturity of 8%. If the firm's tax rate is 25%, compute the WACC? A. 7.48% OB. 7.9% OC. 8.32% OD. 7.07%
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Investments Analysis and Management
Authors: Charles P. Jones
12th edition
978-1118475904, 1118475909, 1118363299, 978-1118363294
