Assume the risk-free rate is 19 the market risk premium is


AllCity, Inc., is financed 35% with debt, 13%with preferred stock, and 52% with common stock. It's cost of debt is 5.8%, it's preferred stock pays an annual dividend of $2.47 and its prices at $34. It has an equity beta of 1.14. Assume the risk-free rate is 1.9%, the market risk premium is 7% and AllCity's tax rate is 35%. What is its after-tax WACC?

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Financial Management: Assume the risk-free rate is 19 the market risk premium is
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