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LIVE MULIA Q Search this course signment 10: Chapter 10 End-of-Chapter Problems aack to Assignment Attempts Keep the Highest/10 6. Chapter Problem 10.10 (WACC), Section

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LIVE MULIA Q Search this course signment 10: Chapter 10 End-of-Chapter Problems aack to Assignment Attempts Keep the Highest/10 6. Chapter Problem 10.10 (WACC), Section Problem 10.10 (WACC), Problem Problem 10.10 (WACC) A-Z book Olsen Outfitters Inc. believes that its optimal capital Mructure consists of 45% common equity and set and its tax rate is 25%. Olen must raise additional capital to fund its upcoming expansion. The firm will have si milion of retained earnings with a cost of ,- 124 New common stock in an amount up to $7 million would have a cost of 14.5 Furthermore, Orten can calle up to $1 million of debt at an interest rate of ro - 11% and an additional $6 million of debt at ro - 13%. The CFO estimates that a proposed expansion would require an investment of 14.2 million. What is the WACC for the last dolar raised to complete the expansion Round your answer to two decimal place. Grade It Now Save & Continue Continue without saving 3 Back to Assignment Attempts Keep the Highest/10 6. Chapter Problem 10.10 (WACC), Section Problem 10.10 (WACC), Problem Problem 10.10 (WACC) ebook Olsen Outfitters Inc. believes that its optimal capital structure consists of 45% common equity and 55% debt, and its tax rate is 25. Oisen must raise additional capital to fund its upcoming expansion. The form will have $1 million of retained earnings with a cost of -12% New common stock in an amount up to $7 million would have a cost of t. - 14.5% Furthermore, Olsen can raise up to 34 million of debt at an interest rate of 11% and an additional $6 million of debt at 13%. The CFO estimates that a proposed expansion would require an investment of $4.2 millon. What is the WACC for the last door rolsed to complete the expansion Round your answer to two decimal places Grade it Now Save & Continue Continue without saving

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