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6. (8 pt) Juniper Inc. has $100m (face value) bonds outstanding with 30 years to maturity. The annual coupon rate is 6% and coupons are

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6. (8 pt) Juniper Inc. has $100m (face value) bonds outstanding with 30 years to maturity. The annual coupon rate is 6% and coupons are paid semi-annually. These bonds are the only debt Juniper has. The bonds are currently trading at 110% of the face value. The company's current book equity value is $150m and market equity value is $220m. The company will pay $3 dividend per share next year to its shareholders. The long-term growth rate of the dividends is 5%. Its current stock price is $60 per share. Corporate tax rate is 30%. Calculate the following for Juniper: (1) (3 pt) Cost of debt (show all inputs to the financial calculator; circle your final answer clearly) (ii) (2 pt) Cost of equity (iii) (3 pt) WACC

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