Here is the condensed $2021$ balance sheet for Skye Computer Company $($in thousands of dollars$)$:

$\backslash$table$[[,2021$

alculating the WACC

Download spreadsheet Calculating the WACC$-$d$099$b$6.$xIsx

a$.$ Calculate the cost of each capital component, that is$,$ the after$-$tax cost of debt, the cost of preferred stock, the cost of equity from retained earnings, and the cost of newly issued common stock. Use the DCF method to find the cost of common equity.

$\backslash$table$[[$After$-$tax cost of debt:,$\%$