AllCity, Inc., is financed

45%

with debt,

10%

with preferred stock, and

45%

with common stock. Its cost of debt is

5.9%,

its preferred stock pays an annual dividend of

$2.45

and is priced at

$31.

It has an equity beta of

1.14.

Assume the risk-free rate is

2.1%,

the market risk premium is

6.6%

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.