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Delta Corporation has the following capital structure: Cost (aftertax) Weights Weighted Cost Debt ( K d ) 6.1 % 30 % 1.83 % Preferred stock

Delta Corporation has the following capital structure:

Cost (aftertax) Weights Weighted Cost
Debt (Kd) 6.1 % 30 % 1.83 %
Preferred stock (Kp) 7.6 20 1.52
Common equity (Ke) (retained earnings) 13.1 50 6.55
Weighted average cost of capital (Ka) 9.90 %

a. If the firm has $23 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").)

Capitol structure size (X) ?

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