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? (enter your answer in millions of dollars (e. g., $10 million should be entered as "10"

b. the 5.5 percent cost of debt referred to earlier applies only to the first $18 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?

Bill is 31 years old, married, and lived with his spouse michelle from january 2018 to september 2018. bill paid all the cost of keeping up his home. he indicated that he is not legally separated and he and michelle agreed they will not a file a joint return. bill has an 8-year-old son, daniel, who qualifies as bill's dependent. bill worked as a clerk and his wages are $20,000 for 2018. his income tax before credits is $500. in 2018, he took a computer class at the local university to improve his job skills. bill has a receipt showing he paid $1,200 for tuition. he paid for all his educational expenses and did not receive any assistance or reimbursement. bill does not have enough deductions to itemize. bill, michelle, and daniel are u.s. citizens with valid social security numbers. 8. bill does not qualify to claim which of the following: a. head of household b. education benefit c. earned income credit d. all of the above