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8. AllCity Inc is financed 41% with debt, 12% with preferred stock, and 47% with common stock. Its pretax cost of debt is 6%. Its

8. AllCity Inc is financed 41% with debt, 12% with preferred stock, and 47% with common stock. Its pretax cost of debt is 6%. Its preferred stock pays an annual dividend of $2.53 and is priced at $27. It has an equity beta of 1.1. Assume the risk-free rate is 1.7%, the market risk premium is 6.9% and AllCity's tax rate is 35%. What is its after-tax WACC?

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