9. Problem 10.10 (WACC) eBook Olsen Outfitters Inc. believes that its optimal capital structure consists of 70% common equity and 30% debt, and its tax rate is 25%. Olsen must raise additional capital to fund its upcoming expansion. The firm will have $2 million of retained earnings with a cost of rs = 13%. New common stock in an amount up to $10 million would have a cost of re = 16.0%. Furthermore, Olsen can raise up to $4 million of debt at an interest rate of ra = 10% and an additional $5 million of debt at ra = 13%. The CFO estimates that a proposed expansion would require an investment of $4.8 million. What is the WACC for the last dollar raised to complete the expansion? Round your answer to two decimal places. % eBook Hook Industries's capital structure consists solely of debt and common equity. It can issue debt at ra = 10%, and its common stock currently pays a $3.75 dividend per share (Do = $3.75). The stock's price is currently $26.00, its dividend is expected to grow at a constant rate of 8% per year, its tax rate is 25%, and its WACC is 12.70%. What percentage of the company's capital structure consists of debt? Do not round intermediate calculations. Round your answer to two decimal places. %