10. Problem 10.10 Click here to read the eBook: Basic Definitions WACC Olsen Outfitters Inc. believes that its optimal capital structure consists of 70% common equity and 30% debt, and its tax rate is 10%. Olsen must raise additional capital to fund its upcoming expansion. The firm will have $3 million of retained earnings with a cost of rs 14%. New common stock in an amount up to $10 million would have a cost of re = 18%. Furthermore, Olsen can raise up to $3 million of debt at an interest rate of Te+ 10% and an additional $4 million of debt at ro - 13%. The CFO estimates that a proposed expansion would require an investment of $4.4 millon. What is the WACC for the last dollar raised to complete the expansion? Round your answer to two decimal places. % Grade It New Save & Cane Continue without saving