The nolan corporation finds it is necessary to determine its marginal cost of capital. nolan’s current capital structure calls for 40 percent debt, 25 percent preferred stock, and 35 percent common equity. initially, common equity will be in the form of retained earnings (ke) and then new common stock (kn). the costs of the various sources of financing are as follows: debt, 5.2 percent; preferred stock, 8 percent; retained earnings, 10 percent; and new common stock, 10.2 percent. a. what is the initial weighted average cost of capital? (include debt, preferred stock, and common equity in the form of retained earnings, ke.) (do not round intermediate calculations. input your answers as a percent rounded to 2 decimal places.)b. if the firm has $35 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". what will the marginal cost of capital be immediately after that point? (equity will remain at 35 percent of the capital structure, but will all be in the form of new common stock, kn.) (do not round intermediate calculations. input your answer as a percent rounded to 2 decimal places.)d. the 5.2 percent cost of debt referred to earlier applies only to the first $22 million of debt. after that, the cost of debt will be 7.2 percent. at what size capital structure will there be a change in the cost of debt? (enter your answer in millions of dollars (e. g., $10 million should be entered as "10". what will the marginal cost of capital be immediately after that point? (consider the facts in both parts c and d.)

Barbara jones opened barb’s book business on february 1, 2010. the company specilizes in editing accounting textbooks. you have been hired as manager. your duties include maintaining the company’s financial records. the following transactions occurred in february , the first month of operations. a. received shareholders' cash contributions on february 1 totaling $16,000 to form the corporation; issued 1,000 shares of common stock. b. paid $2,400 cash on february 2 for three months' rent for office space. tip: for convenience, simply record the full amount of the payment as an asset (prepaid rent). at the end of the month, this account will be adjusted to its proper balance. c. purchased and received supplies on february 3 for $300 cash. d. signed a promissory note on february 4, payable in two years; deposited $10,000 in the company's bank account. e. on february 5, paid cash to buy equipment for $2,500 and land for $7,500. f. placed an advertisement in the local paper on february 6 for $425 cash. g. recorded sales on february 7 totaling $1,800; $1,525 was in cash and the rest on accounts receivable. h. collected accounts receivable of $50 from customers on february 8. i. on february 9, repaired one of the computers for $120 cash. tip: most repairs involve costs that do not provide additional future economic benefits. j. incurred and paid employee wages on february 28 of $420.required: set up appropriate t-accounts for cash, accounts receivable, supplies, prepaid rent, equipment, furniture and fixtures, notes payable, contributed capital, service revenue, advertising expense, wages expense, and repair expense. all accounts begin with zero balances.tip: when preparing the t-accounts, you might find it useful to group them by type: assets, liabilities, stockholders’ equity, revenues, and expenses.2. record in t-accounts the effects of each transaction in february, referencing each transaction in the accounts with the transaction letter. show the unadjusted ending balances in the t-accounts. 3. prepare an unadjusted trial balance at the end of february.4. refer to the revenues and expenses shown on the unadjusted trial balance. based on this information, write a short memo offering your opinion on the results of operations during the first month of business.