Excel Activity: Calculating the WACC Here is the condensed 2021 balance sheet for Skye Computer Company (in thousands of dollars): 2021 Current assets Net fixed assets Total assets $2,000 3,000 $5,000 $ 700 200 Accounts payable and accruals Short-term debt Long-term debt Preferred stock (10,000 shares) Common stock (50,000 shares) Retained earnings Total common equity Total liabilities and equity 1,500 250 1,150 1,200 $2,350 $5,000 Skye's earnings pet share last year were $2.90. The common stock sells for $50.00, list year's dividend (D) was 51.90, and a flotation cost of 11 wuld be required to sell new common stock Security analysts are projecting that the common dividend will grow at an annual rate of 109 Skye's preferred stock pays a dividendo $3.00 per share, and its preferred stock sells for $30,00 per share. The firm's before tax cost of debt and its marginal tax rate is 2546. The firm's currently outstanding 8% annual coupon rate, long-term debt sells it par value. The market rik promos 5%, the risk free rates and Skye's beta 1.572. The firm's total debt, which is the sum of the company's short-term debt and long-term detit, equal 51.7 million The dota has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations, Round your answers to two decimal places Download seen at the WACC / Calciulate the cost of each capital component, that the after tax cost of dele, the cost of preferred stock, the cost of equity from retnined earning and the cost of newly insoed common stock. Use the DC 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 the earnings, using the CAPM method c. What is the cout of new common stock bored on the CAW (nt Pind the difference between ind i, medte methods, and add that differential to the CAPM value for) d. If Skye continues to use the same market value capital structure, what is the farm's WACC coming that (1) itse only retained earnings foruty and expands to rapidly that it must issue new common stock? (Hint: Use the market value preceding current is to determine the weight Also use the site average of the required values obtained under the two methods in cating WACC) WACCHE WACC)