Davis Corporation has 55% debt and 45% equity (market values) in its capital structure. The pretax cost of debt is 10%, and that of equity 15%. The total value of the company is $15 million and its income tax rate is 35%. Davis has to raise $2 million in new capital, which will make the EBIT of the company to be $4 million, with a standard deviation of $2 million. The company has decided to raise the new capital half with debt and half with equity at the existing rates. Calculate Davis's new WACC, and the probability that its interest coverage ratio will be less than one.