Question: Question 1 2 ( 3 points ) Assume Time Warner shares have a market capitalization of $ 7 0 billion. The company is expected to

Question 12(3 points)
Assume Time Warner shares have a market capitalization of $70 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 9% per year. Also, Time Warner has $15 billion of debt that trades with a yield to maturity of 7%. If the firm's tax rate is 25%, compute the WACC?
Question 1 2 ( 3 points ) Assume Time Warner

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