Pfd Company has debt with a yield to maturity of

6.8%,

a cost of equity of

13.7%,

and a cost of preferred stock of

9.1%.

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

$11.1

million,

$3.4

million, and

$13.6

million, respectively, and its tax rate is

22%.

What is this firm's after-tax WACC?

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