Pfd Company has debt with a yield to maturity of 7.2, a cost of equity of 14.2%, and a cost of preferred stock of 10.3%. The market values of its debt, preferred stock, and equity are 11.3million, 2.6 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.
