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

$2021$

Current assets $ $1,400$

Net fixed assets $2,600$

Total assets $ $4,000$

Accounts payable and accruals $ $600$

Short$-$term debt $200$

Long$-$term debt $675$

Preferred stock $(15,000$ shares$)475$

Common stock $(40,000$ shares$)1,000$

Retained earnings $1,050$

Total common equity $ $2,050$

Total liabilities and equity $ $4,000$

Skye's earnings per share last year were $$3\mathrm{.}75.$ The common stock sells for $$55\mathrm{.}00,$ last year's dividend $($D$0)$ was $$2\mathrm{.}75,$ and a flotation cost of $10\%$ would be required to sell new common stock. Security analysts are projecting that the common dividend will grow at an annual rate of $10\%.$ Skye's preferred stock pays a dividend of $$3\mathrm{.}85$ per share, and its preferred stock sells for $$35\mathrm{.}00$ per share. The firm's before$-$tax cost of debt is $9\%,$ and its marginal tax rate is $25\%.$ The firm's currently outstanding $9\%$ annual coupon rate, long$-$term debt sells at par value. The market risk premium is $4\%,$ the risk$-$free rate is $5\%,$ and Skye's beta is $1\mathrm{.}624.$ The firm's total debt, which is the sum of the company's short$-$term debt and long$-$term debt, equals $$0\mathrm{.}875$ million.

The data 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.