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​AllCity, Inc., is financed 40% with​ debt, 10% with preferred​ stock, and 50% with common stock....

​AllCity, Inc., is financed

40%

with​ debt,

10%

with preferred​ stock, and

50%

with common stock. Its cost of debt is

6%​,

its preferred stock pays an annual dividend of

$2.50

and is priced at

$30.

It has an equity beta of

1.1.

Assume the​ risk-free rate is

2%​,

the market risk premium is

7%

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

nothing​%.

​(Round to two decimal​ places.)

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