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The Nolan Corporation finds it is necessary to determine its marginal cost of copia Non structure calls for 30 percent debt. 20 percent preferred stock

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The Nolan Corporation finds it is necessary to determine its marginal cost of copia Non structure calls for 30 percent debt. 20 percent preferred stock and 50 percent common quy equity will be in the form of retained earnings (.) and then new common stock) The cous sources of financing are as follows debt (after-tax). 8.4 percent. preferred stock. 10 percentretine 12 percent and new common stock, 132 percent a. What is the initial weighted average cost of capital? (include debt. preferred stock, and common equity in the form of retained earnings, Ke) (Do not round Intermediate calculations. Input your answers as percent rounded to 2 decimal places.) Weighted Cost % Debt Preferred stock Common equity Veighted average cost of capital % b. If the firm has $36 million in retained einings at what she capital structure we the time earnings? (Enter your answer in millions of dollars (eg. $10 million should be enteres 10 Capital structure (X) mo c. What will the marginal cost of capital be immediately after that point? (Equity will remain at 50 percent of the capital structure, but will all be in the form of new common stock, K.) (Do not round Intermediate calculation Input your answer as a percent rounded to 2 decimal places.) % Marginal cost of capital d. The 8.4 percent cost of debt referred to earlier applies only to the first 533 million of debt. Ater that the cont debt will be 10.4 percent. 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 e. What will the marginal cost of capital be immediately after that point? (Consider the facts in both parts and d) (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) 96 Marginal cost of capital

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