Excel Activity: Calculating the WACC Here is the condensed 2021 balance sheet for Skye Computer Company (in thousands of dollars): \begin{tabular}{lr} & 2021 \\ \hline Current assets & $1,600 \\ Net fixed assets & 2,400 \\ Total assets & $4,000 \\ & \\ Accounts payable and accruals & $600 \\ Short-term debt & 100 \\ Long-term debt & 1,500 \\ Preferred stock (10,000 shares) & 200 \\ Common stock (40,000 shares) & 775 \\ Retained earnings & 825 \\ Total common equity & $1,600 \\ Total liabilities and equity & $4,000 \\ \hline \hline \end{tabular} the company's short-term debt and long-term debt, equals $1.6 million. places. 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. % WACC 1 : % WACC2 : %