Solve

AllCity, Inc., is financed 44% with debt, 9% with preferred stock, and 47% with common stock. Its cost of debt is 6.3%, its preferred stock pays an annual dividend of $2.49 and is priced at $27. It has an equity beta of 1.17. Assume the risk-free rate is 2.4%, the market risk premium is 6.8% and AllCity's tax rate is 35%. What is its after-tax WACC? Note: Assume that the firm will always be able to utilize its full interest tax shield. The WACC is %. (Round to two decimal places.)