Here is the condensed 2021 balance sheet for Skye Computer Company (in thousands of dollars): Skye's earnings per share

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Here is the condensed 2021 balance sheet for Skye ComputerCompany (in thousands of dollars):
Skye's earnings per share last year were $3.05. The common stocksells for $55.00, last year's dividend (D0) was $2.15,and a flotation cost of 9% would be required to sell new commonstock. Security analysts are projecting that the common dividendwill grow at an annual rate of 10%. Skye's preferred stock pays adividend of $3.15 per share, and its preferred stock sells for$35.00 per share. The firm's before-tax cost of debt is 9%, and itsmarginal tax rate is 25%. The firm's currently outstanding 9%annual coupon rate, long-term debt sells at par value. The marketrisk premium is 6%, the risk-free rate is 7%, and Skye's beta is1.494. The firm's total debt, which is the sum of the company'sshort-term debt and long-term debt, equals $0.9 million.
The data has been collected in the Microsoft Excel file below.Download the spreadsheet and perform the required analysis toanswer the questions below. Do not round intermediate calculations.Round your answers to two decimal places.
Download spreadsheet Calculating the WACC-aca637.xlsx
Calculate the cost of each capital component, that is, theafter-tax cost of debt, the cost of preferred stock, the cost ofequity from retained earnings, and the cost of newly issued commonstock. Use the DCF method to find the cost of common equity.
After-tax cost of debt: fill in the blank 2 %
Cost of preferred stock: fill in the blank 3 %
Cost of retained earnings: fill in the blank 4 %
Cost of new common stock: fill in the blank 5 %
Now calculate the cost of common equity from retained earnings,using the CAPM method.
fill in the blank 6 %
What is the cost of new common stock based on the CAPM?(Hint: Find the difference betweenre and rs as determined by the DCFmethod, and add that differential to the CAPM value forrs.)
fill in the blank 7 %
If Skye continues to use the same market-value capitalstructure, what is the firm's WACC assuming that (1) it uses onlyretained earnings for equity and (2) if it expands so rapidly thatit must issue new common stock? (Hint: Use the marketvalue capital structure excluding current liabilities to determinethe weights. Also, use the simple average of the required valuesobtained under the two methods in calculating WACC.)
WACC1: fill in the blank 8 %
WACC2: fill in the blank 9 %