AllCity, Inc., is financed

36%

with debt,

6%

with preferred stock, and

58%

with common stock. Its pretax cost of debt is

5.9%,

its preferred stock pays an annual dividend of

$2.46

and is priced at

$25.

It has an equity beta of

1.11.

Assume the risk-free rate is

1.6%,

the market risk premium is

6.9%

and AllCity's tax rate is

25%.

What is its after-tax WACC?

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