The Nolan Corporation finds It is necessary to determine Its marginal cost of capital. Nolan's current capltal structure calls for 45 percent debt, 20 percent preferred stock, and 35 percent common equity. InItlally, common equity will be in the form of retalned earnings (Ke) and then new common stock (Kn). The costs of the varlous sources of financing are as follows: debt (after-tax). 6.2 percent; preferred stock, 9 percent; retained earnings, 8 percent; and new common stock, 9.2 percent. a. What is the inltial weighted average cost of capital? (Include debt, preferred stock, and common equlty in the form of retained earnings, Ke.) Note: Do not round intermedlate calculations. Input your answers as a percent rounded to 2 decimal places. b. If the firm has $14 million in retained earnings, at what size capltal structure will the firm run out of retalned earnings? Note: Enter your answer in millions of dollars (e.g.. \$10 million should be entered as "10"). c. What will the marginal cost of capltal be immedlately after that point? (Equity will remain at 35 percent of the capital structure, but will all be in the form of new common stock, Kn.) Note: Do not round intermedlate calculations. Input your answer as a percent rounded to 2 decimal places. d. The 6.2 percent cost of debt referred to earlier applies only to the first $27 million of debt. After that, the cost of debt will be 8.5 percent. At what size capltal structure will there be a change in the cost of debt? Note: Enter your answer in millions of dollars (e.g., \$10 million should be entered as "10"). e. What will the marginal cost of capital be immedlately after that point? (Consider the facts in both parts c and d.) Note: Do not round intermedlate calculations. Input your answer as a percent rounded to 2 decimal places