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Olsen Outfitters Inc. believes that its optimal capital structure consists of $65\%$ common equity and $35\%$ debt, and its tax rate is $25\%.$ Olsen must raise

additional capital to fund its upcoming expansion. The firm will have $$3$ million of retained earnings with a cost of $r_s=12\%.$ New common stock in an

amount up to $$9$ million would have a cost of $r_e=14\mathrm{.}0\%.$ Furthermore, Olsen can raise up to $$3$ million of debt at an interest rate of $r_d=10\%$ and an

additional $$5$ million of debt at $r_d=13\%.$ The CFO estimates that a proposed expansion would require an investment of $$4\mathrm{.}8$ million. What is the WACC

for the last dollar raised to complete the expansion? Round your answer to two decimal places.

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