Pfd Company has debt with a yield to maturity of

5.9%,

a cost of equity of

14.5%,

and a cost of preferred stock of

9.9%.

The market values of its debt, preferred stock, and equity are

$15.1

million,

$3.3

million, and

$14.3

million, respectively, and its tax rate is

35%.

What is this firm's after-tax WACC?

Note: Assume that the firm will always be able to utilize its full interest tax shield.

Question content area bottom

Part 1

Pfd's WACC is

enter your response here%.

(Round to two decimal places.)