Download spreadsheet Calculating the WACC$-$cebd$58.$xIsx

issued common stock. Use the DCF method to find the cost of common equity.

After$-$tax cost of debt:

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Cost of preferred stock:

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Cost of retained earnings:

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Cost of new common stock:

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b$.$ Now calculate the cost of common equity from retained earnings, using the CAPM method.

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value for $r_{s^{\text{'}}})$

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the required values obtained under the two methods in calculating WACC.$)$

$WAC{C}_1$

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$WAC{C}_2$ :

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