Here is the condensed 2021 balance sheet for Skye Computer Company (in thousands of dollars): Skye's earnings per share last year were $3.75. The common stock sells for $55.00, last year's dividend (D0) was $2.75, and a flotation cost of 12% 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 $3.85 per shore, and its preferred stock sells for $35.00 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 selis at por value. The market risk premium is 5%, the risk-free rate is 69%, and Skye's beta is 1.684 , The firm's total debt, which is the sum of the company's short-term debt and long-term debt, equals $1.525 milition. The data has been colected in the Microsaft Excel fie 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. 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. 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 mothod. % c. What is the cost of new common stock based on the CAPM? (Hint: Find the difference between re and rn as determined by the DCF method, and add that differential to the CAPM value for rs.) d. If Skye contirf.jes to use the same market-value capital structure, what is the frrm's wacc assuming that ( 1 ) it uses only retained earnings for equity and (2) if it expands so rapldly that it must issue new common stock? (Hint: Use the market value capital structure excluding current liabilities to determine the weights. Also, use the simple average of the required values obtained under the two methods in calculating wAcC.) WACC 1 : \% wace 2 : W