here is the xondensed $2021$ balance sheet for skye computer companyy $($in thousands of dollars$)$

current assests: $$1750$

Ner Fixes Assets: $$3250$

total assest: $$5000$

Accounts Payable & accurals: $$900$

short term debt: $$100$

long term debt$ $$1500$

peferr stock $(15,000$ shares$)$ $$400$

common stk $(50,000$ shares$)1025$

retained earnings: $$1075$

total common equity: $$2100$

total liabilities &equity$ $$5000$

Skye's earnings per share last year were $$2,90.$ The comman stock sells for $$45\mathrm{.}00,$ last year's dividend $(D_0)$ was $$1\mathrm{.}80,$ and a flotation cost of $12\%$ would be required to sell new common stock. Security analysts are projecting that the common dividend will grow at an annual rate of $10\%.5$kye $\text{'}$s preforred stock pays a dividend of $$3\mathrm{.}00$ per share, and its preferred stock sells for $$30\mathrm{.}00$ per share. The firm's before$-$tax cost of debt is $9\%,$ and its marginal tax rate is $25\%.$ The firm's currently outstanding $9\%$ annual coupon rate, long$-$term debt sells at par value. The market risk premium is $5\%,$ the risk$-$free rate is $6\%,$ and skye's beta is $1\mathrm{.}256.$ The lirm's total debt, which is the sum of the company's short$-$term debt and lang$-$term debt, equals $$1\mathrm{.}6$ 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.

Downilosd spreadsheet Calculating the WACC$-$exc$958.$xlsx

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 nowly issued common stock. Use the DCF method to find the cost of common equity.

b$.$ Now calculate the cost of common equity from retained earnings, using the CAPM method.

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c$.$ What is the cost of new common stock based on the CAPM? $($Hint: Find the difference between $r_f$ and $r_s$ as determined by the DCF method, and add that differential to the CAPM value for $r_s.)$

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d$.$ If Skye continues to use the same market$-$value capital structure, what is the firm's WACC assuming that

$(1)$ it uses only retained earnings for equity and $(2)$ if it expands so rapidly 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.$)$