Olsen Outfitters Inc. believes that its optimal capital structure consists of $70\%$ common equity and $30\%$ debt, and its tax rate is $40\%.$ Olsen must raise additional capital to fund its

upcoming expansion. The firm will have $$5$ million of retained earnings with a cost of $r_s=10\%.$ New common stock in an amount up to $$7$ million would have a cost of $r_e=12\mathrm{.}5\%.$

Furthermore, Olsen can raise up to $$4$ million of debt at an interest rate of $r_d=9\%$ and an additional $$5$ million of debt at $r_d=11\%.$ The CFO estimates that a proposed expansion would

require an investment of $$11\mathrm{.}2$ 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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