Pfd Company has debt with a yield to maturity of

7.7%,

a cost of equity of

12.8%,

and a cost of preferred stock of

9.2%.

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

$12.8

million,

$2.7

million, and

$14.7

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.