9 The Evans Corporation finds that it is necessary to determine its marginal cost of capital. Evans' current capital structure calls for 40 percent debt, 20 percent preferred stock, and 40 percent common equity. Initially, common equity will be in the form of retained earnings (Ke) and then new common stock (Kn). The costs of the various sources of financing are as follows: debt, 8.3 percent, preferred stock, 11 percent; retained earnings, 9 percent, and new common stock, 12 2 percent. a. What is the initial weighted average cost of capital? (Include debt, preferred stock, and common equity in the form of retained earnings. Ke) (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Weighted average cost of capital b. If the firm has $23 million in retained earnings, at what size of Investment will the firm run out of retained earings? (Enter the answer in millions. Round the final answer to 2 decimal places.) Capital structure size (X) million c. What will the marginal cost of capital be immediately after that point? (Equity will remain at 40 percent of the capital structure, but it will all be in the form of new common stock, Kn)(Do not round intermediate calculations. Round the final answer to 2 decimal places.) Marginal cost of capital % $