AllCity, Inc., is financed 40% with debt, 5% with preferred stock, and 55% with common stock. Its cost of debt is 5.6%, its preferred stock pays an annual dividend of $2.49 and is priced at $28. It has an equity beta of 1.18. 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 6.42 %. (Round to two decimal places.)