Back to Assignment Attempts Do No Harm 1 6. Problem 10.10 (WACC and Percentage of Debt Financing) eBook Olsen Outfitters Inc, believes that its optimal capital structure consists of 55% common equity and 45% debt, and its tax rate is 40%. Olsen must raise additional capital to fund its upcoming expansion. The firm will have $1 million of retained earnings with a cost of rs = 12%. New common stock in an amount up to $8 million would have a cost of r. = 13.0%. Furthermore, Olsen can raise up to $3 million of debt at an interest rate of ra = 10% and an additional $6 million of debt at ra = 13%. The CFO estimates that a proposed expansion would require an investment of $5.8 million. What is the WACC for the last dollar raised to complete the expansion? Round your answer to two decimal places. % Grade it Now Save & Continue continue without saving T VE 3:56 AM 6/30/2021