The McGee Gorporation finds it is neteessary to defermitie ts marginal cost of capital McGees cutfent caplital siructure calls for 45 Percent debt, 15 percent prefcred stock and 10 percent cammon equity, Initially, cammon equity will be inthe farm of (ctained a. What is the initial weighted average cost of capitar (incliade debi, preferred stock, and common equity in the form of retained tarmings, xe) Note: Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimol places. b. If the fim has $340 milion in tetained eainings, at what size capital structure will the firm run out of retainct earnings? Note: Enteryour answer in mililions of doliars (e.g., $10 million should be entered as "10"). c. What will the marginal cost of capital be inmequiately after that paint? (Equity will remain at 40 peicent of the capital structure, brit Will all be in the form of new common stock, Kn) Note: Do not round intermediate calculations input your. onkwer os a percent rounded to 2 decimol places. c. What will the marginat cost of eapital be iminediately affer that point (Equity will femain at 40 percent of the capital structure, but will all be in the form of new oomimonstock, inl Note. Do notround intermediate colcuiations. Input your answer as o percent rounded to 2 decimal places. d. The 45 percent cost of debt referred to aboverapplies only to the first $54 million of debt After that, the cost of debt will be 9.5 : prycent. At what size capital structure will there he a change in the cost of debt? Note: Enter your answer in mililions of dollars (0.9,510 mililion should be entered as 7107). e. What will the marginal cost of capital be irminediotely alter that point? (Consider the facts in both parts cand d) Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places