JRN Enterprises just announced that it plans to cut its dividend for the next year from 3.00 to 1.50 per share and use the extra funds to expand its operations. Prior to this announcement, JRN's dividends were expected to grow indefinitely at 4% per year and JRN's stock was trading at 25.50 per share. With the new expansion, JRN's dividends are expected to grow at 8% per year indefinitely. Assume that JRN's risk is unchanged by the expansion. (a) What is JRN's cost of equity capital?