AllCity, Inc., is financed

38%

with debt,

9%

with preferred stock, and

53%

with common stock. Its pretax cost of debt is

6.2%,

its preferred stock pays an annual dividend of

$2.47

and is priced at

$25.

It has an equity beta of

1.12.

Assume the risk-free rate is

2.1%,

the market risk premium is

7.4%

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.

The WACC is

nothing%.

(Round to two decimal places.)