Allcity inc is financed 45 with debt 7 with preferred stock, Financial Management

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Allcity inc is financed 45 with debt 7 with preferred stock

AllCity, Inc., is financed 45% with debt, 7% with preferred stock, and 48% with common stock. Its cost of debt is 6.4%, its preferred stock pays an annual dividend of S2.46 and is priced at $28. It has an equity beta of 1.13. Assume the risk-free rate is 1.9%, the market risk premium is 6.6% and AllCity's tax rate is 35%. What is its after-tax WACC? The WACC is %. (Round to two decimal places.)

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Financial Management: Allcity inc is financed 45 with debt 7 with preferred stock

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Financial Management: Allcity inc is financed 45 with debt 7 with preferred stock

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