Pfd Company has debt with a yield to maturity of 7.2%, a cost of equity of 14.6%, and a cost of preferred stock of 9.4%. The market values of its debt, preferred stock, and equity are $14.7 million, $3.1 million, and $13.2 million, respectively, and its tax rate is 21%. 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 \%. (Round to two decimal places.) Pfd Company has debt with a yield to maturity of 7.8%, a cost of equity of 14.2%, and a cost of preferred stock of 10.3%. The market values of its debt, preferred stock, and equity are $11.7 million, $3.2 million, and $13.5 million, respectively, and its tax rate is 25%. What is this firm's after-tax WACC? Note: Assume that the firm will always be able to utilize its full interest tax shield. The WACC is expressed as: rwacc=rEE%+rpfdP%+rD(1TC)D% where rwacc is the weighted average cost of capital, rE is the required return (cost of capital) of levered equity, rpfo is the required return (cost of capital) for preferred stock, rD is the required return (cost of capital) for debt, TC is the marginal corporate tax rate, and E%,P%, and D% are the fractions of the firm financed with equity, preferred stock, and debt, respectively. Therefore, rwacc=0.142$28.4million$13.5million+0.103$28.4million$3.2million+0.078(10.25)$28.4million$11.7million=0.1032 Pfd's WACC is 10.32%