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?

Match the vocabulary word to the correct definition. 1. compensation 2. corporate social responsibility 3. discrimination 4. benefits 5. biodegradable a. a business’s obligation to the community and the environment b. the ability to naturally break down or decompose c. treating someone differently because of his or her race, religion,gender, sexual orientation, or disabilities d. indirect and non-cash compensation paid to employees e. the salary and other benefits for doing a job

The rybczynski theorem describes: (a) how commodity price changes influence real factor rewards (b) how commodity price changes influence relative factor rewards. (c) how changes in factor endowments cause changes in commodity outputs. (d) how trade leads to factor price equalization.

The new york times (nov. 30, 1993) reported that “the inability of opec to agree last week to cut production has sent the oil market into turmoil . . [leading to] the lowest price for domestic crude oil since june 1990.” why were the members of opec trying to agree to cut production? so they could save more oil for future consumption so they could lower the price so they could raise the price why do you suppose opec was unable to agree on cutting production? because each country has a different production capacity because each country experiences different production costs because each country has an incentive to cheat on any agreement the newspaper also noted opec’s view “that producing nations outside the organization, like norway and britain, should do their share and cut production.” what does the phrase “do their share” suggest about opec’s desired relationship with norway and britain? opec would like norway and britain to keep their production levels high. opec would like norway and britain to act competitively. opec would like norway and britain to join the cartel.