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Deita Corporation has the folowing captal structure- Cest Weighted af )Weghts Debe ( 66% 20% 325 Prelered stock 11.2 10 112 Common equity (el aned

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Deita Corporation has the folowing captal structure- Cest Weighted af )Weghts Debe ( 66% 20% 325 Prelered stock 11.2 10 112 Common equity (el aned eamings) 112 70 3 20% Weighted average cost of captal a. it the fim has $49 mition in netained eamings, at what sae capital structure wil the tm run out of netaned eamings? (Enter your answer in milions of dolars (e.g. $10 milion shouid be entered as "10y Captal structure uze 00 million b. The 6.6 percent cost of dete reterred to eater apptes orey to the trst $23 ton of dept Aner that the cost of dept will go up Al what sige captal structure w there be a change in the cost of depr? (Enter your answer in milions of doars (e.g-$10 mdtion should be entered as -10)3 Captal structure sire (2 milion Delta Corporation has the following capital structure Cost (aftertax) Weights 66% Weighted Cost 1.32 % 1.12 7.84 Debt (Ka) Preferred stock (K Common equity (K) (retained eanings) Weighted average cost of captal (K) 20 % 10 112 11.2 70 10.28% a. If the firm has $49 milion in retained eanings, at what size capital structure wil the firm run out of retained eamings? (Enter your answer in millions of dollars (e.g, $10 million should be entered as "10").) Capital structure size (X) million b. The 6.6 percent cost of debt referred to earlier applies only to the frst $23 millicn of debt After that the cost of debt will go up. At what size capital structure will there be a ch (Enter your answer in millions of dollars (e.g. $10 million should be entered as "10")) in the st of del Capital structure size (2) milion je

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