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). $$\begin{array} { | l | l | }
\hline \text { YEARS } & \text { DIVIDENDS } \
\hline 2014 & \$ 2.94 \
\hline 2013 & \$ 2.70 \
\hline 2012 & \$ 2.49 \
\hline 2011 & \$ 2.29 \
\hline
\end{array}$$

Question

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). $$\begin{array} { | l | l | } 
\hline \text { YEARS } & \text { DIVIDENDS } \
\hline 2014 & \$ 2.94 \
\hline 2013 & \$ 2.70 \
\hline 2012 & \$ 2.49 \
\hline 2011 & \$ 2.29 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The Answer of 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). $$\begin{array} { | l | l | } 
\hline \text { YEARS } & \text { DIVIDENDS } \
\hline 2014 & \$ 2.94 \
\hline 2013 & \$ 2.70 \
\hline 2012 & \$ 2.49 \
\hline 2011 & \$ 2.29 \
\hline
\end{array}$$

What Is the Cost of Equity for Fat Rat Laboratories