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AllCity, Inc., is financed 39% with debt, 14% with preferred stock, and 47% with common...

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AllCity, Inc., is financed 39% with debt, 14% with preferred stock, and 47% with common stock. Its pretax cost of debt is 6.4%, its preferred stock pays an annual dividend of $2.49 and is priced at $34. It has an equity beta of 1.17. Assume the risk-free rate is 1.8%, the market risk premium is 7.4% and AllCity's tax rate is 25%. 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.)

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