Excel Activity: Calculating the WACC Here is the condensed 2021 balance sheet for Skye Computer Company (in thousands of dollars): the company's short-term debt and long-term debt, equals $1.625 million. places. Download spreadsheet Calculating the WACC-582010.xlsx 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 : % WACC 2 : % Calculating the WACC Skye Computer Company: Balance Sheet as of December 31 (in thousands of dollars) Current assets Net fixed assets Total assets Accounts payable and accruals Short-term debt Long-term debt Preferred stock Common stock Retained earnings Total common equity Total liabilities and equity Last year's earnings per share Current price of common stock, P0 Last year's dividend on common stock, D0 Growth rate of common dividend, g Flotation cost for common stock, F Common stock outstanding Current price of preferred stock, Pp Dividend on preferred stock, Dp Preferred stock outstanding Before-tax cost of debt, rd Market risk premium, rMrRF Risk-free rate, rRF Beta Tax rate Total debt 2021 \begin{tabular}{|c|c|c|} \hline B & C & D \\ \hline \multicolumn{3}{|l|}{ December 31} \\ \hline 2021 & & \\ \hline$1,750 & & \\ \hline 3,250 & & \\ \hline$5,000 & & \\ \hline$700 & & \\ \hline 200 & & \\ \hline 1,425 & & \\ \hline 475 & & \\ \hline 1,075 & & \\ \hline 1,125 & & \\ \hline$2,200 & & \\ \hline$5,000 & & \\ \hline$3.40 & & \\ \hline$60.00 & & \\ \hline$2.70 & & \\ \hline 9% & & \\ \hline 12% & & \\ \hline 40,000 & & \\ \hline$35.00 & & \\ \hline$3.50 & & \\ \hline 15,000 & & \\ \hline 8% & & \\ \hline 5% & & \\ \hline 6% & & \\ \hline 1.216 & & \\ \hline 25% & & \\ \hline$1,625 & thousand & \\ \hline \end{tabular}