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Here is the condensed 2021 balance sheet for Skye Computer Company (in thousands of doilars): Skye's beta is 1.466. The firm's total debt, which is
Here is the condensed 2021 balance sheet for Skye Computer Company (in thousands of doilars): Skye's beta is 1.466. The firm's total debt, which is the sum of the company's short-term debt and long-term debt, equals $1.6 million. Download spreadsheat Calculating the WACC-ct2cce xsx Atter-taxcostofdebt:Costofpreferredstock:Costofretainedearnings:Costofnewcommonstock0%5%O%D b. Now calculate the cost of common equity from retained eamings, using the CAPM method. % c. What is the cost of new common stock based on the CAPM? (Hint: Find the difference between re and r5 as determined by the DCF method, and add that differential to the CAPM value for r5-) 5% the weights. Also, use the simple average of the required values obtained under the two methods in caiculating Wacc.) wacc1: wACC2
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