Q23

Delta Corporation has the following capital structure: a. If the firm has $35 million In retalned earnings, at what size capital structure will the firm run out of retained earnings? Note: Enter your answer in millions of dollars (e.g., $10 million should be entered as "10". b. Note: Enter your answer In millions of dollars (e.g., $10 million should be entered as "10".The 9.0 percent cost of debt referred to earller applies only to the first $12 million of debt. After that the cost of debt will go up. At what size capltal structure will there be a change in the cost of debt