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Pfd Company has debt with a yield to maturity of 5.8%, a cost of equity...

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Accounting

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Pfd Company has debt with a yield to maturity of 5.8%, a cost of equity of 12.9%, and a cost of preferred stock of 9.9%. The market values of its debt, preferred stock, and equity are $11.8 million, $2.8 million, and $16.7 million, respectively, and its tax rate is 21%. 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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