Delta Corporation has the following capital structure:

	Cost (aftertax)			Weights			Weighted Cost
Debt (Kd)		10.5	%		15	%		1.58	%
Preferred stock (Kp)		10.0			20			2.00
Common equity (Ke) (retained earnings)		14.2			65			9.23
Weighted average cost of capital (Ka)								12.81	%

a. If the firm has $39 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 10.5 percent cost of debt referred to earlier applies only to the first $21 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 "10").)