P 13-16 (similar to) Question Help * Pfd Company has debt with a yield to maturity of 6.8%, a cost of equity of 13.4%, and a cost of preferred stock of 9.9%. The market values of its debt, preferred stock, and equity are $13.2 million, $2.8 million, and $16.4 million, respectively, and its tax rate is 38%. What is this firm's after-tax WACC? Note: Assume that the firm will always be able to utilize its full interest tax shield Pfd's WACC is L1%. (Round to two decimal places.)