Here is the condensed 2021 baiance sheet for Skye Computer Company (in thousands of dollars): Skye's earnings per share last year were $3.05. The common stock selis for $50.00, last year's dividend (D0) was $2.15, and a flotation cost of 8% would be required to sell new common stock. Security analysts are projecting that the common dividend will grow at an annual rate of 8%. Skye's preferred stock pays a dividend of $3.15 per share, and its preferred stock selis for $35.00 per share. The firm's before-tax cost of debt is 896 , and its marginal tax rate is 25%. The firm's currently outstanding 8% annual coupon rate, long-term debt selis at par value. The market risk premium is 5%, the risk-free rate is 6%, and Skye's beta is 1.706. The firm's total debt, which is the sum of the company's short-term debt and long-term debt, equais $1 milion. The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediste calculations. Round your answers to two decimal places. a. Calculate the cost of each capital component, that is, the after-tax cost of debt, the cost of preferred stock, the cost of equity from retained earnings, and the cost of newly issued common stock. Use the DCF method to find the cost of common equity. After-tax cost of debt: Cost of preferred stock: % Cost of retained earnings: Cost of new common stock: b. Now calculate the cost of common equity from retained earnings, using the CAPM method