Given the tax rate of 40% of this corporation, calculate its after-tax weighted average cost of capital (WACC) for ABC Corporation.

Table: the before-tax weighted average cost of capital (WACC) for ABC Corporation

Source of Capital	Weight (1)	Cost (2)	Weighted Cost (1) X (2)
Long-Term Debt	.4	5.6%	2.24%
Preferred Stock	.1	10.6%	1.06%
Common Stock Equity	.5	13%	6.5%
Totals	1		9.8%

Answer true, false or uncertain and explain briefly on the following statement. "the after-tax wacc cannot ever be higher than the before-tax wacc."