AND

WACC Olsen Outfitters Inc. believes that its optimal capital structure consists of 40% common equity and 60% debt, and its tax rate is 40% Olsen must raise additional capital to fund its upcoming expansion. The firm will have $1 million of reta ned earrings with a cost of r 13% New o mmon stockin an amount up to $9 million ould have a ost cr = 15% Furthermore, Olsen can raise up to $4 million of debt at an interest rate of rd 11% and an additional S3 million of debt at rd 12%. The CFO estimates that a proposed expansion would require an investment of S6.5 million. What is the WACC for the last dollar raised to complete the expansion? Round your answer to two decimal places