Here is the condensed 2021 balance sheet for Skye Computer Company (in thousands of dollars): Skye's earnings per share last year were $2,90. The coenenon stock selis for $50,00, last year's dividend (Do) was $2,10, and a flotation cost of 8% would be required to sell new coemon stock. Security analysts are projectang that the common dividend will grow at an annual rate of towi. Skye's preferted stock pays a dividend of $3.00 per share, and its preferred stock sells for 525.00 per share. The firm's before-tax cost of debt is 9%, and its marginal tax rate is 25%, the firm's currently extstanding 9% annual coupoe rate, long-term debt selis at par value. The market risk premium es 6\%h, the risk-free rate is TW, and Skye's beta is 1.676. The firm's total debt, which is the sum of the company's short-term debt and loeng-term debt, equals $1.6 milioni The data has been collected in the Morosolt Excel file below, Download the spreadchect and perform the requared analysis to answer the questaons below. Do not round intermediate culculations. Round your answers to twe decimal glaces. The data has been collected in the Microsoft Exced flle below. Dowrload the spreadsheet and perform the requared analysis to answer the questionis below. Do not round intermediate calculations, Round your answers to two decimal places. Download soceadshert Calculatiog the WACC-4d5283, als x a. Caiculate the cost of each capital component, that is, the after-tax cost of debe, the cost of nreferred stock, the cost of equity from retained earnings; and the cost of newly issued common stock. Use the DCE method to find the cost of cammon equity. After-tax cost of debt: Cost of preferred stock: Cost of retained earnings: Cost of niew comment stock: b. Now calculate the cost of common equity from retained earnings, using the CAPM method. 5. What is the cost of new common stock based on the CAPM? (Hirt: Find the difference between re and r5 as determaned by the DCF method, and add that differential to the CAPM value for rs-) d. If Shye continues to use the same market-value capital structure, what is the firm's WACr assuming that (1) it uses only retained earnings for equity and (2) if it expands so rapidly that it must issue new common stock? (Phint; Use the market value capotal structure excluding current leabilities to determine the weights. Aso, use the simple average of the required values obtained under the two methods in caloulating WAcC.) WACC WACC2WAl7