BUSI 320-Delta Corporation has the following capital structure

9)Delta Corporation has the following capital structure: Cost(aftertax)WeightsWeightedCost Debt (Kd)8.6%10%0.86% Preferred stock (Kp)6.8201.36 Common equity (Ke) (retained earnings)10.2707.14 Weighted average cost of capital (Ka)9.36% a.If the firm has $49 million in retained earnings, at what size capital structure will the firm run out of retained earnings? (Enter your answer in millions of dollars (e.g., $10 million should be entered as “10”).) Capital structure size (X)$ million b.The 8.6 percent cost of debt referred to earlier applies only to the first $9 million of debt. After that, the cost of debt will go up. 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 rev: 11_12_2014_QC_58992