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Olsen Outfitters Inc. believes that its optimal capital structure consists of 70% common equity and 30%...

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 $1 million of retained earnings with a cost of rs = 12%. New common stock in an amount up to $10 million would have a cost of re = 14%. Furthermore, Olsen can raise up to $3 million of debt at an interest rate of rd = 9% and an additional $4 million of debt at rd = 10%. The CFO estimates that a proposed expansion would require an investment of $8.5 million. What is the WACC for the last dollar raised to complete the expansion? Round your answer to two decimal places.

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Olsen Outfitters Inc. believes that its optimal capital structure consists of 70% common equity and 30%...
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 $3 million of retained earnings with a cost of rs = 12%. New common stock in an amount up to $10 million would have a cost of re = 16%. Furthermore, Olsen can raise up to $4 million of debt at an interest...
Olsen Outfitters Inc. believes that its optimal capital structure consists of 70% common equity and 30%...
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Olsen Outfitters Inc. believes that its optimal capital structure consists of 70% common equity and 30%...
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 $1 million of retained earnings with a cost of rs = 13%. New common stock in an amount up to $9 million would have a cost of re = 16%. Furthermore, Olsen can raise up to $3 million of debt at an interest...
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Olsen Outfitters Inc. believes that its optimal capital structure consists of 70% common equity and 30% 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 rs = 12%. New common stock in an amount up to $6 million would have a cost of re = 13.0%. Furthermore, Olsen can raise up to $3 million of debt at an interest...
Olsen Outfitters Inc. believes that its optimal capital structure consists of 70% common equity and 30%...
Olsen Outfitters Inc. believes that its optimal capital structure consists of 70% common equity and 30% debt, and its tax rate is 25%. Olsen must raise additional capital to fund its upcoming expansion. The firm will have $5 million of retained earnings with a cost of rs = 11%. New common stock in an amount up to $8 million would have a cost of re = 13.0%. Furthermore, Olsen can raise up to $4 million of debt at an interest...
Olsen Outfitters Inc. believes that its optimal capital structure consists of 70% common equity and 30%...
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 $2 million of retained earnings with a cost of rs = 12%. New common stock in an amount up to $10 million would have a cost of re = 14%. Furthermore, Olsen can raise up to $3 million of debt at an interest...
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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 = 19%. Furthermore, Olsen can raise up to $3 million of debt at an interest...
Olsen Outfitters Inc. believes that its optimal capital structure consists of 70% common equity and 30%...
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 $2 million of retained earnings with a cost of rs = 14%. New common stock in an amount up to $8 million would have a cost of re = 17%. Furthermore, Olsen can raise up to $2 million of debt at an interest...
Olsen Outfitters Inc. believes that its optimal capital structure consists of 70% common equity and 30%...
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 $3 million of retained earnings with a cost of rs = 13%. New common stock in an amount up to $10 million would have a cost of re = 16%. Furthermore, Olsen can raise up to $2 million of debt at an interest...
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