What is the cost of equity for Fat Rat Laboratories, Inc.? Assume that the stock has the following dividends, the stock sells for $70 with flotation costs of $6, and Fat Rat expects to pay a dividend of $3.20 next year (rounded). YEARS DIVIDENDS 2014 $2.94 2013 $2.70 2012 $2.4
What is the cost of equity for Fat Rat Laboratories, Inc.? Assume that the stock has the following dividends, the stock sells for $70 with flotation costs of $6, and Fat Rat expects to pay a dividend of $3.20 next year (rounded). YEARS DIVIDENDS 2014 $2.94 2013 $2.70 2012 $2.4
Chapter11: The Cost Of Capital
Section: Chapter Questions
Problem 8PROB
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QUESTION 13
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What is the
cost of equity for Fat Rat Laboratories, Inc.? Assume that the stock has the following dividends, the stock sells for $70 with flotation costs of $6, and Fat Rat expects to pay a dividend of $3.20 next year (rounded).
YEARS
DIVIDENDS
2014
$2.94
2013
$2.70
2012
$2.49
2011
$2.29
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