Question: Evaluate Time Warner's value range using the discounted cash flow (DCF) approach WACC Inputs Weight of Debt Weight of Equity Cost of Debt Risk-Free

WACC Inputs Weight of Debt Weight of Equity Cost of Debt Risk-Free

Evaluate Time Warner's value range using the discounted cash flow (DCF) approach WACC Inputs Weight of Debt Weight of Equity Cost of Debt Risk-Free Rate Beta Market Risk Premium Tax Rate Free Cash Flow (2016) Inputs (in $ millions) EBIT Depreciation & Amortization Capital Expenditure Working Capital 2016 Working Capital 2015 Notes: 21% 0.2143514 - 79% 100% weight of debt 3.50% most recent bank loan interest rate 2.31% long-term governance bond yield 1.9 from Bloomberg 5% common practice for North America 35% marginal tax rate 6,583 669 432 3,782 4,511

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