AllCity, Inc., is financed 36% with debt, 11% with preferred stock, and 53% with common stock. Its cost of debt is 5.8%, its preferred stock pays an annual dividend of $2.46 and is priced at $34. It has an equity beta of 1.12. Assume the risk-free rate is 2%, the market risk premium is 6.8% and AllCity's tax rate is 35%. What is its after-tax WACC? The WACC is 7.25%