P0		$50.00
Net Ppf		$30.00
Dpf		$3.30
D0		$2.10
g		7%
B-T rd		10%
Skye's beta		0.83
Market risk premium, MRP		6.0%
Risk free rate, rRF		6.5%
Target capital structure from debt		45%
Target capital structure from preferred stock		5%
Target capital structure from common stock		50%
Tax rate		35%
Flotation cost for new common stock		10%

Compute cost of debt.

Compute cost of preferred stock

Compute cost of common equity from retained earnings , using CAPM.

Using the target capital structure, find the company's WACC.