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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? (2 marks) 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? (3 marks) Show your calculations with your answers.
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