Email Instructor Save Exit Submit Assignment for Grading Questions Problem 10.10 12. 13. 14. 15. Question 14 of 15 Check My Work (2 remaining) 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 40%. Olsen must raise additional capital to fund its upcoming expansion. The firm will have $5 million of retained earnings with a cost of rs 15%. New common stock in an amount up to $7 million would have a cost of re-1990 Furthermore, Olsen can raise up to $3 million of debt at an interest rate of rd-11% and an additional $3 million of debt at rd 13%. The CFO estimates that a proposed expansion would require an investment of $7.8 million. What is the WACC for the last dollar raised to complete the expansion? Round your answer to two decimal places. 5.35 Hide Feedback Incorrect Check My Work (2 remaining) Icon Key Problem 1 Question 14 O Email Instructor Email Instructor Save Exit Submit Assignment for Grading Questions Problem 10.10 12. 13. 14. 15. Question 14 of 15 Check My Work (2 remaining) 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 40%. Olsen must raise additional capital to fund its upcoming expansion. The firm will have $5 million of retained earnings with a cost of rs 15%. New common stock in an amount up to $7 million would have a cost of re-1990 Furthermore, Olsen can raise up to $3 million of debt at an interest rate of rd-11% and an additional $3 million of debt at rd 13%. The CFO estimates that a proposed expansion would require an investment of $7.8 million. What is the WACC for the last dollar raised to complete the expansion? Round your answer to two decimal places. 5.35 Hide Feedback Incorrect Check My Work (2 remaining) Icon Key Problem 1 Question 14 O Email Instructor