5. Chapter Problem 10.10 (WACC), Section Problem 10.10 (WACC), Problem Problem 10.10 (WACC) Oisen Outfitters Inc. believes that its optimal capital structure consists of 60% common equity and 40% debt, and its tax rate is 25%. Olsen must raise additional capital to fund its upcoming expansion. The firm will have $1 million of retained earnings with a cost of ra=10%. New comman stock in an amount up to $10 million would have a cost of re=11.0%. Furthermore, Olsen can raise up to $3 million of debt at an interest rate of rd=11% and an additional $3million of debt at rd=14%. The CFOie estimates that a proposed expansion would require an investment of $4.0 million. What is the WACC for the last dollar raised to complete the expansion? Round your answer to two decimal places