Delta Corporation has the following capital structure:

	Cost (aftertax)			Weights			Weighted Cost
Debt (Kd)		5.1	%		20	%		1.02	%
Preferred stock (Kp)		6.6			5			0.33
Common equity (Ke) (retained earnings)		14.1			75			10.58
Weighted average cost of capital (Ka)								11.93	%

a. If the firm has $33 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 5.1 percent cost of debt referred to earlier applies only to the first $5 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