Assignment: Homework - Chapter 10 Assigrument Score: 70.32% Questions Problem 10.10 (wACC) Question 6 of 7 Check My Work (2 remaining) . 7. Olsen outfitters Inc. believes that its optimal capital structure consists of 65% common equity and 35% debt, and its tax rate is 25%. Olsen must raise additional capital to fund its upcoming expansion. The firm will have $1 million af retained earnings with a cost of rs=13%. New common stock in an amount up to $7 million would have a cost of re =14. 0%. Furthermore, Olsen can raise up to $2 million of debt at an interest rate of rd=10% and an additional $5 million of debt at rd=13%. The CFO estimates that a proposed expansion would require an investment of $4.4 million. What is the WaCc for the last dollar raised to complete the expansion? Round your answer to two decimal places. %