AllCity, Inc., is financed

45%

with debt,

14%

with preferred stock, and

41%

with common stock. Its pretax cost of debt is

5.6%,

its preferred stock pays an annual dividend of

$2.49

and is priced at

$26.

It has an equity beta of

1.16.

Assume the risk-free rate is

1.7%,

the market risk premium is

7.2%

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.