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AllCity, Inc., is financed 4 4 % with debt, 1 3 % with preferred stock, and 4 3 % with common stock. Its cost of

"AllCity, Inc., is financed 44% with debt, 13% with preferred stock, and 43% with common stock. Its cost of debt is 6.1%, its preferred stock pays an annual dividend of $ 2.49 and is priced at $ 33. It has an equity beta of 1.18. Assume the risk-free rate is 2%, the market risk premium is 6.6% 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."

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