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Here is the condensed 2021 balance sheet for Skye Computer Company (in thousands of dollars): Download spreadsheet Calculating the WACC-9d40ac.xlsx b. Now calculate the cost
Here is the condensed 2021 balance sheet for Skye Computer Company (in thousands of dollars): Download spreadsheet Calculating the WACC-9d40ac.xlsx b. Now calculate the cost of common equity from retained earnings, using the CAPM method. c. What is the cost of new common stock based on the CAPM? (Hint: Find the difference between re and rs as determined by the DCF method, and add that differential to the CAPM value for rs ) obtained under the two methods in calculating wacc.) WACC 1:3% WACC22= (3)
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