Question: Pid Company has debt with a yield to maturity of 7.9%, a cost of equity of 13.4%, and a cost of preferred stock of 9.7%.

Pid Company has debt with a yield to maturity of 7.9%,

Pid Company has debt with a yield to maturity of 7.9%, a cost of equity of 13.4%, and a cost of preferred stock of 9.7%. The market values of its debt, preferred stock, and equity are $12.6 million $2.7 million, and $15.8 million, respectively, and its tax rate is 22%. What is this firm's after-tax WACC? Note: Assume that the firm will always be able to utilize its full interest tax shield Pid's WACC is 1%. (Round to two decimal places.)

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