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What is the after-tax wacc

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Question: All City Inc. is financed 35% with debt, 10% with preferred stock, and 55% with common stock. Its pre-tax cost of debt is 6%; its preferred stock pays an annual dividend of $2.25 and is priced at $32. It has an equity beta of 1.4. Assume the risk-free rate is 2%, the market risk premium is 6%, and All City's tax rate is 35%. What is its after-tax WACC? What is its after-tax WACC? r_wacc = (Round to five decimal places.)

Reference no: EM131955959

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