Once a Kid, Always a Kid is a public company that pays dividends on it shares....

 

Transcribed Image Text:

Once a Kid, Always a Kid is a public company that pays dividends on it shares. It just paid (yesterday) a dividend of $3. Dividends are paid annually and are expected to grow in perpetuity at 4%. Data from Hoo Ya! Finance yields an equity beta for Once a Kid of 1.3. The current expected market return is 13%, and the risk-free rate is 2%. If Once a Kid has a 35% tax rate, what is their after-tax cost of equity capital? Once a Kid, Always a Kid is a public company that pays dividends on it shares. It just paid (yesterday) a dividend of $3. Dividends are paid annually and are expected to grow in perpetuity at 4%. Data from Hoo Ya! Finance yields an equity beta for Once a Kid of 1.3. The current expected market return is 13%, and the risk-free rate is 2%. If Once a Kid has a 35% tax rate, what is their after-tax cost of equity capital?

Answer rating: 100% (QA)

I cant view images but based on the description youve provided we can calculate the aftertax cost of ... View the full answer