Skye's earnings per share last year were $$2\mathrm{.}40.$ The common stock sells for $$55\mathrm{.}00,$ last year's dividend $($Do$)$ was $$1,40,$ and a flotati stock pays a dividend of $$2\mathrm{.}50$ per share, and its preferred stock sells for $$25\mathrm{.}00$ per share. The firm's before$-$tax rate is $6\%,$ and Skye's beta is $1\mathrm{.}414.$ The firm's total debt, which is the sum of the company's short$-$term debt and long term debts equals $$1\mathrm{.}425$ millionsA$)*$ Calculate the cost of each capital component, that is$,$ the after tax cost of debt, the cost of preferred stock, the After$-$tax cost of debt:Cost of preferred stock:Cost of retained earnings:Cost of new common stocksB$)*$ 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 roasntial to the CAPM value for r$.-)$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.$)$WACC$1$: $\%$WACC$2$ :$\%$