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Here is the condensed 2021 balance sheet for 5kye Computer Compary (in theusands of dellars) Skye's earnings per share last year were $3.20. The comman

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Here is the condensed 2021 balance sheet for 5kye Computer Compary (in theusands of dellars) Skye's earnings per share last year were $3.20. The comman stock sells for 505.00 , last year's dividend (00) was $2:10, and a flotation coot of 114 we weuld be recuired to sell new common stock: Security analysts are projecting that the common dividend will grow at an annual rate of 8%. Skye's preferted stock pars a dividend of 5130 per share, and its preferred stock sells for 930.00 per ahare. The ferm's belore-tax cost of debt is 12%4, and its marginal tax rate is 25%6. The firm s curtently outstiendang 12% annual coupon rate, long term debt sells at par value. The market risk premium is 6%, the risk-free rate is 7%4, and Sikne's beta a 1.242 . The fimm's total debt, which is the sum of the company's short-term debt and long-term debt, equals 51.7 .milion. The data has been collected in the Microsolt Excel life below. Downioad the Epreadsheet and perform the required analysis to unswier the questions beln, Do not round intermediate calcularions, Pound your answers to two decimal places. cost of newly istued common steck. Use the pCI nyethad to find the cot of comshon equiy Arter-tax cost of debt Cost of preferred stock Cost of retained carnmesi Cost of ner cominon stock b. Now calculate the cost of coarumon equity trom retained earmings, using the CAPM method: c. What is the cont of new common stock bated on the CApM? (Henti find the defterence betweth r a and is as deternuined by the ber method, and add that. ditferential to the CAPM value for fs-) 4. If Skye continues to ase the same marketwalue caphtal structure, what is the firm's Whcec assuring that (1) it wes only retuinkd cainienigs for equity and (2) if it Also, use the simple arverage of the requated valoes obeained ander the two methodi in cticulating Wacc.) WACC1 WACC2

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