AllCity Inc. is financed 45% with debt, 10% with preferred stock, and 45% with common...
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AllCity Inc. is financed 45% with debt, 10% with preferred stock, and 45% with common stock. Its pre-tax cost of debt is 6%; its preferred stock pays an annual dividend of $2.75 and is priced at $32. It has an equity beta of 1.2. Assume the risk-free rate is 2%, the market risk premium is 6%, and AllCity's tax rate is 35%. What is its after-tax WACC
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