Market capitalization of billion

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Assume Time Warner shares have a market capitalization of $50 billion. The company is expected to pay a dividend of $0.45 per share ad each share trades for $30. The growth rate in dividends is expected to be 8% per year. Also, Time Warner has $10 Billion of debt that trades with a yield to maturity of 7%. If the firm's tax is 35% what is the WACC?

Reference no: EM132201235

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