Time Warner, the company that owns New Line Cinema, has a beta on its stock (TWC) of 1.15. Over the long-term, the risk-free rate of interest has been around 3% and the return on the market (S&P) has been around 11%. Warner's cost of debt is approximate 5% and its corporate tax rate is around 32%. Time Warner has about dollar 24 billion in net debt and dollar 42 billion in equity. The current price of Time Warner's stock is around dollar 70. Use this infomation to answer the following question. It WACC is 9%.

Suppose that Warner Brothers plans to borrow $10 Billion and use these funds to repurchase shares, adding this total to its outstanding debt permanently. What is the lowest price Time Warner can offer and have shareholders tender their shares? Its answer is $75.33 but I am not sure how to arrive to the answer.