Problem
Pfd Company has debt with a yield to maturity of 5.6%, a cost of equity of 14.2%, and a cost of preferred stock of 8.6%. The market values of its debt, preferred stock, and equity are $13.2 million, $3.2 million, and $13.1 million, respectively, and its tax rate is 21%. What is this ?rm's after-tax WACC?