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

$2.75

and is priced at

$27.

It has an equity beta of

1.3.

Assume the risk-free rate is

2%,

the market risk premium is

6%,

and AllCity's tax rate is

35%.

What is its after-tax WACC?