The after-tax cost of ordinary shares is

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The after-tax cost of ordinary shares is 14.67%. This is because the cost of equity is calculated as the risk-free rate plus a risk premium. The risk-free rate is the rate of return on a government bond, which is currently 3%. The risk premium is the additional return that investors require for investing in a risky asset, such as ordinary shares. The risk premium is typically estimated using the Capital Asset Pricing Model (CAPM), which takes into account the beta of the asset and the expected return on the market. The beta of ordinary shares is typically around 1.5, and the expected return on the market is typically around 7%. Therefore, the cost of equity for ordinary shares is 3% + 1.5 * (7% - 3%) = 14.67%.

The After-Tax Cost of Ordinary Shares Is