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 $4 million of retained earnings with a cost of rs=11%r s=11%. New common stock in an amount up to $8 million would have a cost of re=12.5%re=12.5%. Furthermore, Olsen can raise up to $4 million of debt at an interest rate of rd=9%r d=9% and an additional $5 million of debt at rd=13%r d=13%. The CFO estimates that a proposed expansion would require an investment of $8.2 million. What is the WACC for the last dollar raised to complete the expansion?

Wilmington company has two manufacturing departments--assembly and fabrication. it considers all of its manufacturing overhead costs to be fixed costs. the first set of data that is shown below is based on estimates from the beginning of the year. the second set of data relates to one particular job completed during the year--job bravo. estimated data assembly fabrication total manufacturing overhead costs $ 6,720,000 $ 7,280,000 $ 14,000,000 direct labor-hours 140,000 84,000 224,000 machine-hours 56,000 280,000 336,000 job bravo assembly fabrication total direct labor-hours 29 21 50 machine-hours 21 24 45 required: 1. if wilmington used a plantwide predetermined overhead rate based on direct labor-hours, how much manufacturing overhead would be applied to job bravo