Delta Corporation has the following capital structure:

	Cost (aftertax)			Weights			Weighted Cost
Debt (Kd)		5.6	%		25	%		1.40	%
Preferred stock (Kp)		10.2			25			2.55
Common equity (Ke) (retained earnings)		13.2			50			6.60
Weighted average cost of capital (Ka)								10.55	%

a. If the firm has $31 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").) Capital structure size (X)= _________ million

b. The 5.6 percent cost of debt referred to earlier applies only to the first $22 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").) Capital structure size (Z)= _______ million