Please Solve with Excel:

2021

Current assets $ 1,400

Net fixed assets 2,600

Total assets $ 4,000

Accounts payable and accruals $ 700

Short-term debt 200

Long-term debt 700

Preferred stock (15,000 shares) 400

Common stock (40,000 shares) 975

Retained earnings 1,025

Total common equity $ 2,000

Total liabilities and equity $ 4,000

After-tax cost of debt= 6%

Cost of preferred stock= 11%

cost of retained earnings=14.8%

cost of new common stock= 15.22%

cost of common equity from retained earnings (CAPM method) = 15.14%

cost of new common stock (CAPM method) =15.55%

Question: 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.)

WACC1=

WACC2=