WACC

Klose Outfitters Inc. believes that its optimal capital structure consists of 55% common equity and 45% debt, and its tax rate is 40%. Klose must raise additional capital to fund its upcoming expansion. The firm will have $2 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= 15%. Furthermore, Klose can raise up to $4 million of debt at an interest rate of rd= 9%, and an additional $6 million of debt at rd= 10%. The CFO estimates that a proposed expansion would require an investment of $6.8 million. What is the WACC for the last dollar raised to complete the expansion? Round your answer to two decimal places.