Olsen Outfitters Inc. believes that its optimal capital structure consists of 55% common equity and 45% 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 rs = 10%. New common stock in an amount up to $10 million would have a cost of re = 13.0%. Furthermore, Olsen can raise up to $4 million of debt at an interest rate of rd = 10% and an additional $5 million of debt at rd = 11%. The CFO estimates that a proposed 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.

the correct answer is not 7.19% or 10.15 or 7.16 or 9.87