AllCity, Inc., is financed

40%

with debt,

10%

with preferred stock, and

50%

with common stock. Its cost of debt is

6%,

its preferred stock pays an annual dividend of

$2.50

and is priced at

$30.

It has an equity beta of

1.1.

Assume the risk-free rate is

2%,

the market risk premium is

7%

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.

The WACC is

nothing%.

(Round to two decimal places.)