can a percentile be reported like this (with a decimal point??)
Percentiles can be reported as decimal points, but I really, really doubt that you'd get a decimal like 7.4. I've never seen a decimal like that on the WJ or any other achievement test for that matter. The decimals usually only show up when you are above the 99th percentile and then you get 99.9, etc. They pretty much always end with a .9, not .4 or anything like that.
For the WJ reading master test, you should be able to get GE (grade equivalent), AE (age equivalent), percentile, NCE (norm curve equivalent), and standard scores. I, unfortunately, don't know how to convert btwn GE and percentiles for a 4th grader (or any grade, honestly!), but I strongly suspect that the numbers you were given, if they were GEs, would be a lot closer to that 90th percentile mark you've seen before for your ds.
I'd ask for a more complete print out from the testing b/c it sounds like someone made a mistake.