AllCity, Inc., is financed 43% with debt, 15% with preferred stock, and 42% with common...
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AllCity, Inc., is financed 43% with debt, 15% with preferred stock, and 42% with common stock. Its cost of debt is 5.7%, its preferred stock pays an annual dividend of $2.45 and is priced at $26. It has an equity beta of 1.15. Assume the risk-free rate is 2.5%, the market risk premium is 7.4% 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.)
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