Delta Corporation has the following capital structure: Cost (aftertax) Weights Weighted Cost
Debt (Kd) 10.5% 15% 1.58%
Preferred stock (Kp) 10 20 2
Common equity (Ke) (retained earnings) 14.2 65 9.23
Weighted average cost of capital (Ka) 12.81%

Required:
a. If the firm has $39 million in retained earnings, at what size capital structure will the firm run out of retained earnings?
b. The 10.5 percent cost of debt referred to earlier applies only to the first $21 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?

When borrowers want funding to pay for different projects, they go to the loanable funds market and acquire funds through either indirect finance or direct finance. below, you are given five different scenarios. is each an example of direct finance or indirect finance?

Net income and owner's equity for four businesses four different proprietorships, jupiter, mars, saturn, and venus, show the same balance sheet data at the beginning and end of a year. these data, exclusive of the amount of owner's equity, are summarized as follows: total assets total liabilities beginning of the year $550,000 $215,000 end of the year 844,000 320,000 on the basis of the preceding data and the following additional information for the year, determine the net income (or loss) of each company for the year. (hint: first determine the amount of increase or decrease in owner's equity during the year.) jupiter: the owner had made no additional investments in the business and had made no withdrawals from the business. mars: the owner had made no additional investments in the business but had withdrawn $36,000. saturn: the owner had made an additional investment of $60,000 but had made no withdrawals. venus: the owner had made an additional investment of $60,000 and had withdrawn $36,000. jupiter net income $ mars net income $ saturn net income $ venus net income $

When selecting a savings account, you should look at the following factors except annual percentage yield (apy) fees minimum balance interest thresholds taxes paid on the interest variable interest rates