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Pfd Company has debt with a yield to maturity of 5.7%, a cost of equity...

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Finance

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Pfd Company has debt with a yield to maturity of 5.7%, a cost of equity of 12.6%, and a cost of preferred stock of 10.1%. The market values of its debt, preferred stock, and equity are $10.6 million, $2.9 million, and $15.9 million, respectively, and its tax rate is 35%. What is this firm's after-tax WACC? Pfd's WACC is L1%. (Round to two decimal places.)

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