Olsen Outfitters Inc. believes that its optimal capital structure consists of 65% common equity and 35% 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 rs = 13%. New common stock in an amount up to $6 million would have a cost of re = 14.5%. Furthermore, Olsen can raise up to $3 million of debt at an interest rate of ra = 9% and an additional $6 million of debt at rd = 10%. The CFO estimates that a proposed expansion would require an investment of $8.0 million. What is the WACC for the last dollar raised to complete the expansion? Round your answer to two decimal places. 11.53 % Travis Industries plans to issue perpetual preferred stock with an $11.00 dividend. The stock is currently selling for $109.50, but flotation costs will be 9% of the market price, so the net price will be $99.65 per share. What is the cost of the preferred stock, including flotation? Round your answer to two decimal places. %