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AllCity Inc. is financed 50% with debt, 15% with preferred stock, and 35% with common...

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Finance

AllCity Inc. is financed 50% with debt, 15% with preferred stock, and 35% with common stock. Its pre-tax cost of debt is 6%; its preferred stock pays an annual dividend of $3.25 and is priced at $27. It has an equity beta of 1.4. Assume the risk-free rate is 2%, the market risk premium is 5%, and AllCity's tax rate is 35%. What is its after-tax WACC?

Part 1

What is its after-tax WACC?

rwacc= enter your response here (Round to five decimal places.)

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