AllCity, Inc., is financed

35%

with debt,

7%

with preferred stock, and

58%

with common stock. Its cost of debt is

5.8%,

its preferred stock pays an annual dividend of

$2.47

and is priced at

$27.

It has an equity beta of

1.19.

Assume the risk-free rate is

2.2%,

the market risk premium is

7.4%

and AllCity's tax rate is

35%.

What is its after-tax WACC?

Note: Assume that the firm will always be able to utilize its full interest tax shield.

AllCity, Inc., is financed 35% with debt, 7% with preferred stock, and 58% with common stock. Its cost of debt is 5.8%, its preferred stock pays an annual dividend of $2.47 and is priced at $27. It has an equity beta of 1.19. Assume the risk-free rate is 2.2%, the market risk premium is 7.4% and AllCity's tax rate is 35%. What is its after-tax WACC? Note: Assume that the firm will always be able to utilize its full interest tax shield. The WACC is %. (Round to two decimal places.)