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The Nolan Corporation finds it is necessary to determine IN marginal cost of capital

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The Nolan Corporation finds it is necessary to determine IN marginal cost of capital. Nolan, current capital structure calls for 35 percent debt. 30 percent preferred stock, a. 35 percent common equity Initially, common equity will be in the form of retained earnings (4) and then new common stock (Q. The costs of the various sources of financing are as follows: debt (after-tax), 8.3 percent: preferred stn.,11 Percent retained earnings,. Percent and new common stock,12.2 percent 
a. What is the in0al weighted average cost &capital., (Include debt preferred stock, and common equity in Me Nam of retained eaminqs, Ke.) (Do not round Intermediate calculations. Input your answers as a percent rounded to a decimal places) 
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b. If the firm has $28 million in retained eaminqs, at what size capital structure will the firm run out of retained earnings? (EE., your answer in millions of dollars (e.g., $10 million :no.. entered as "10").) 
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c.caVtItswtruilIctIqrrem,argiwna: con: capital immediately after that point? (Equity will remain at 35 percent of the , A a e in the form of new common stock, 14.) (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) 
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d. The 8.3 percent cost of debt referred to earlier applies only to the first $35 million of debt After that, the cost of debt will be 9.3 percent At what size capital structure will there be a change in the cost of debt? (Enter your answer M millions of dollars WO., OD million should be entered as .101.) 
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e. What will the marginal cost of capital be immediately after that point, (Consider the facts in both parts ca. A) (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) 
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