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PLEASE NEED HELP WITH THIS QUESTION ASAP!! Eaton International Corporation has the following capital structure Cost WeightingsCost Weighted Debt (Kd Preferred stock (Kp) Common equity

image text in transcribedPLEASE NEED HELP WITH THIS QUESTION ASAP!!

Eaton International Corporation has the following capital structure Cost WeightingsCost Weighted Debt (Kd Preferred stock (Kp) Common equity (Ke) (retained earnings) (aftertax) 7 2% 6.5 14.5 1.08% 11.60 13.01% 15% 80 Weighted average cost of capital (Ka) a. If the firm has $36 million in retained earnings, at what size capital structure will the firm run out of retained earnings? (Enter the answer in millions.) Capital structure size (X) million b. The 7.2 percent cost of debt referred to above applied only to the first $12 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 the answer in millions.) Capital structure size (Z) million

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