a. Here is the condensed 2020 balance sheet for Skye Computer Company (in thousands of dollars). Compute the market value weights using the information provided below. Only include appropriatr sources. CONDENSED BALANCE SHEET FOR SKYE COMPUTER COMPANY MV Capital Structure $81.00 1,000 $80.00 50 Dollars % 2020 Additional information for part a: Current assets $15,000 Common Stock Price-P Net fixed assets 40,000 Common shares outstanding (000) Total assets $55,000 Preferred Stock Price-P 1 Preferred shares outstanding (000) Accounts payable and accruals $5,000 3 Long-term debt 15,000 4 Preferred stock 5,000 5 Common stock $20,000 6 Retained earings 10,000 -7 Total common equity $30,000 8 Total liabilities & equity $55,000 $0 0.0% 29 so b. Compute the after-tax cost of debt using the information provided. The firm's tax rate is 25% 31 Currently, there is one outstanding 10% coupon semi-annual bond that sells for $900 and it has 25 years to matuurity. 32 It will pay par value of $1,000 at maturity. 33 34 Bond maturity (years) 25 35 Payments per year 2 10% 36 Annual coupon rate 37 Par value $1,000.00 Ann D E F G 12 XV fx Note: A B Preferred stock Common stock Retained earnings - Total common equity Total liabilities & equity 5,000 $20,000 10,000 $30,000 $55,000 $0 0.0% b. Compute the after-tax cost of debt using the information provided. The firm's tax rate is 25%. 4 Currently, there is one outstanding 10% coupon semi-annual bond that sells for $900 and it has 25 years to matuurity. 2 It will pay par value of $1,000 at maturity. 3 -4 Bond maturity (years) 25 5 Payments per year 2 36 Annual coupon rate 10% 37 Par value = $1,000.00 38 Bond price = $900.00 39 Tax rate = 25% 40 41 42 43 44 45 46 47 48 49 50 51 52 (1-T)