Time warner shares have a market capitalization of

Reference no: EM13622171

Time Warner shares have a market capitalization of 55billion. The company just paid a dividend of 35cents per share and each share trades for 35dollars. The growth rate in dividends is expected to be 6.5% per year. Also, Time Warner has 20billion dollars of debt that trades with a yield to maturity of 7%. If the firm's tax rate is 30%, compute the WACC.

Reference no: EM13622171

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