Question: Please answer the question with detailed steps. Thanks! Question 4 AllCity, Inc., is financed 40% with debt, 8% with preferred stock, and 52% with common

Please answer the question with detailed steps. Thanks!

Please answer the question with detailed steps. Thanks! Question 4 AllCity, Inc.,

Question 4 AllCity, Inc., is financed 40% with debt, 8% with preferred stock, and 52% with common stock. Its cost of debt is 5.7%, its preferred stock pays an annual dividend of $2.49 and is priced at $30. It has an equity beta of 1.15. Assume the risk-free rate is 1.7%, the market risk premium is 7.3% and AllCity's tax rate is 35%. What is its after-tax WACC? [Note: Assume that the firm will always be able to utilize its full interest tax shield.]

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