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Excel Activity: Calculating the WACC Here is the condensed 2021 balance sheet for Skye Computer Company (in thousands of dollars): debt and long-term debt, equals
Excel Activity: Calculating the WACC Here is the condensed 2021 balance sheet for Skye Computer Company (in thousands of dollars): debt and long-term debt, equals $1.525 million. calculations. Round your answers to two decimal places. calculations. Round your answers to two decimal places. Download spreadsheet Calculating the WACC-f467f7.xlsx 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. % CAPM value for rs.) % of the required values obtained under the two methods in calculating WACC.) WACC 1 : % WACC 2 : %
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