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Delta Corporation has the following capital structure: a. If the firm has $42 million in retained earnings, at what size capital structure will the firm
Delta Corporation has the following capital structure: a. If the firm has $42 million in retained earnings, at what size capital structure will the firm run out of retained earnings? (Enter your answer in millions of dollars (e.g., $10 million should be entered as "10").) b. The 8.5 percent cost of debt referred to earlier applies only to the first $14 million of debt. After that the cost of debt will go up. At what size capital structure will there be a change in the cost of debt? (Enter your answer in millions of dollars (e.g., $10 million should be entered as 1010").)
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