Question: Juniper Inc. expects to grow its dividend by 3% each year. Its share price is $15 and the company just paid a dividend of $1.50.

Juniper Inc. expects to grow its dividend by 3% each year. Its share price is $15 and the company just paid a dividend of $1.50.

a) What is the cost of equity for Juniper? 



b) If Juniper's beta is 2.0, the risk free rate is 2%, and the expected return on the market is 6%, what is the cost of equity?

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