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Pfd Company has debt with a yield to maturity of 7.1 %, a cost of...

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Finance

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Pfd Company has debt with a yield to maturity of 7.1 %, a cost of equity of 14.8%, and a cost of preferred stock of 10.2%. The market values of its debt, preferred stock, and equity are $10.6 million, $2.7 million and $16.9 million, respectively, and its tax rate is 35%. What is this firm's after-tax WACC? Note: Assume that the firm will always be able to utilize its full interest tax shield. Pfd's WACC is %. (Round to two decimal places.)

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