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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 with debt, with preferred stock, and with common stock. Its cost of debt is its preferred stock pays an annual dividend of $ and is priced at $ It has an equity beta of Assume the riskfree rate is the market risk premium is and AllCity's tax rate is What is its aftertax WACC?
Note: Assume that the firm will always be able to utilize its full interest tax shield."
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