Question: Looking for some help with the excel formulas. I tried a few but the numbers seem off. Calculating the WACC Skye Computer Company: Balance Sheet

Looking for some help with the excel formulas. I tried a few but the numbers seem off.

Looking for some help with the excel formulas. I tried a fewbut the numbers seem off. Calculating the WACC Skye Computer Company: Balance

Calculating the WACC Skye Computer Company: Balance Sheet as of December 31 (in thousands of dollars) Current assets 2021$2,0003,000$5,000 Total assets Accounts payable and accruals Short-term debt $900 100 Long-term debt Preferred stock 1,500 Common stock 1,0751,125$2,200$5,000 Retained earnings Total common equity Total liabilities and equity Last year's earnings per share $3.40 Current price of common stock, P0 $60.00 Last year's dividend on common stock, D0 10% Growth rate of common dividend, g Flotation cost for common stock, F 10% Common stock outstanding 40,000 Current price of preferred stock, PP Dividend on preferred stock, Dp $3.50 Preferred stock outstanding 10,000 Before-tax cost of debt, rd 11% Market risk premium, rMrRF 6% Risk-free rate, rRF 7% Beta 1.436 Tax rate 25% Total debt $1,600 thousand a. Calculating the cost of each capital component (using the DCF method to find the cost of common equity) b. Calculating the cost of common equity from retained earnings, using the CAPM method Cost of retained earnings c. Calculating the cost of new common stock based on the CAPM Flotation cost adjustment Cost of new common stock d. Calculating the firm's WACC assuming that (1) it uses only retained earnings for equity and (2) if it expands so rapidly that it must issue new common stock WACC1 WACC2 \#N/A \#N/A

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