Back to Assignment X Attempts 0 Keep the Highest 0/10 6. Chapter Problem 10.10 (WACC), Section Problem 10.10 (WACC), Problem Problem 10.10 (WACC) A-Z elbook Olsen Outfitters Inc, believes that its optimal capital structure consists of 70% common equity and 30% debt, and its tax rate is 25%. Oisen must raise aditional coital to fund its upcoming expansion. The firm will have $5 million of retained earnings with a cost of r, -11%. New common stock in an amount up to $5 milion would have a cost of 13.5 Furthermore, Olsen can raise up to $4 million of debt at an interest rate of ra -11% and an additional $4 million of debt at-139. The CFO estimates that a propesed expansion would require an investment of $8.4 million. What is the WACC for the last dollar raised to complete the expansion? Round your answer to two decimal places Grade it Now Save & Continue Continue without saving At Assignment 10: Chapter 10 End-of-Chapter Problems a Search 0 Back to Assignment X bols Atlemata o Keep the Highest 0/10 6. Chapter Problem 10.10 (WACC), Section Problem 10.10 (WACC), Problem Problem 10.10 (WACC) A-2 atest Olsen Outfitters Inc. believes that its optimal capital structure consists of 70% common culty and 10% debt, and its tax rate 25 One must seinal capital to fonds upcoming expansion. The form will have 55 million of retained earnings with a cost of -115 New common stock in amount up to $1 milion would have a cost of 13.4 Furthermore, Olsen can raise up to 54 million of debt at an interest rate of 114 and additional 4 milion of de-13The croestimates that a proposed expansion would require an investment of $8.4 million. What is the WACC for the last dolored to complete the expansion? Round your answer to two decimals Grade It Now Save & Continue Continue without saving