Adding the following data/assumptions in the problem above, compute for the company's WACC if the firm acquires new capital in market value proportions. Securities Market prices Bonds P 950 per bond Preferred Shares P 50 per share Ordinary Share P 50 per share Solution: Current Capital Structure at Book Values Weighted Sources of Capital Amount (P) Proportion Specific Cost CC Bonds (P980 par x 15,000 14,700,000 15% 7.50% 1.13% Preferred Shares, 150,000 shares @P50 par 7,500,000 8% 11.00% 0.88% Ordinary Equity , 1,500,000 shares at P50 par 53,250,000 55% 14.00% 7.77% Retained Earnings 21,750,000 22% 13.50% 2.97% Total 97,200,000 100% 12.75% Allocation of Ordinary share market value of P75,000,000 (1,500,000 X P50) using the proportion to the sum of their book value. Book Value Proportion Allocation Ordinary Equity 37,500,000 71% 53,250,000 Retained Earnings 15,000,000 29% 21,750,000 52,500,000 100% 75,000,000