AllCity Inc. is financed 35% with debt, 10% with preferred stock, and 55% with common stock. Its pre-tax cost of debt is 6%; its preferred stock pays an annual dividend of $ 2.50 and is priced at $33. It has an equity beta of 1.2 . Assume the risk-free rate is 2%, the market risk premium is 5%, and AllCity's tax rate is 35%. What is its after-tax WACC?