Assume Time Warner shares have a market capitalization of $60 billion. The company is expected to pay a dividend of $0.30 per share and each share trades for $40. The growth rate in dividends is expected to be 7% per year
Also, Time Warner has $20 billion of debt that trades with a yield to maturity of 8%. If the firm's tax rate is 35%, compute the WACC?
A) 6.05%
B) 6.40%
C) 6.76%
D) 7.11%
Answer: D
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a. Deontological b. Ethical egoism c. Utilitarian d. Sidgwick’s dualism
When brainstorming to generate ideas, you should A) critique each idea as it is suggested
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a. True b. False Indicate whether the statement is true or false