Answer:
WACC	10.38305%
Explanation:
<em><u>First we solve for the source of financing:</u></em>
Expansion: 5,900,000
60% Equity: 3,540,000 
Retained Earnins 2,000,000
then 1,540,000 will be common equity
40% debt: 2,360,000 It can raise up to 3,000,000 so it will be sufficient
D  2,360 
E  1,540 
RE	2000
V  5,900 
Now we can solve for Weighted average cost of capital
 
 
Ke	0.15
Equity weight 0.261016949 (1,540,000 / 5,900,000)
Kre	0.12
RE Weight  0,338983  (2,000,000 / 5,900,000)
Kd	0.1
Debt Weight	0.4 ( 2,360,000 / 5,900,000)
t	0.4
 
 
WACC	10.38305%