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Business, 01.07.2019 20:40 jazminecrosby

Delta corporation has the following capital structure: cost (aftertax) weights weighted cost debt (kd) 5.5 % 25 % 1.38 % preferred stock (kp) 10.5 25 2.63 common equity (ke) (retained earnings) 10.5 50 5.25 weighted average cost of capital (ka) 9.25 % a. if the firm has $26 million in retained earnings, at what size capital structure will the firm run out of retained earnings?

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