Olsen Outfitters Inc. believes that its optimal capital structure consists of 60% of equity and 40% of debt, and its tax rate is 30%. Olsen must raise additional capital to fund it upcoming expansion. The firm will have $5 million of retained earnings with a cost of rs-12%. New common stock in an amount up to 10 million would have a cost of re-14.5%. Furthermore, Olsen can raise up to $6 million of debt at an interest rate of rd=8% and an additional $7 million of debt at rd=11%. The CFO estimates that a proposed expansion would require an investment of $11 million. What is the WACC for the last dollar raised to complete the expansion? 10.94% 9.44% 10.40% 11.90% You were hired as a consultant to Quigley Company, whose target capital structure is 35% debt, 10% preferred, and 55% common equity. The interest rate on new debt is 6.50%, the yield on the preferred is 6.00%, the cost of retained earnings is 14.75%, and the tax rate is 40%. The firm will not be issuing any new stock. What is Quigley's WACC? Round final answer to two decimal places. Do not round your intermediate calculations. 9.17% 12.19% 8.87% 8.36% 10.08%