AllCity, Inc., is financed

42 %

with debt,

5 %

with preferred stock, and

53 %

with common stock. Its cost of debt is

5.6 %,

its preferred stock pays an annual dividend of

$ 2.47

and is priced at

$ 25

It has an equity beta of

1.17

Assume the risk-free rate is

2 %

the market risk premium is

6.7 %

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.