Question: Please answer the following question with the attached image. Part A and B. Delta Corporation has the following capital structure: A. If the firm has

Please answer the following question with the attached image. Part A and B.

Delta Corporation has the following capital structure:

A. If the firm has $30 million in retained earnings, at what size capital structure will the firm run out of retained earnings?

Please answer the following question with the attached image. Part A and

Debt (Rd) Preferred stock (KP) Common equity (Kg) (retained earnings) Weighted average cost of capital (K3) Cost WEighted (aftertax) Weights Cost 8.2% 30% 2.46% 7.5 10 0.75 13.5 60 8.10 11.31%

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