A to Z industry has three sources of capital: the equity share, preference share, and debt, costing 18%, 15% and 7% respectively. The proportions of different kinds of capital are reflected in the balance sheet as per the market values as follows;

Proportions
Capital	Book Value	Market Value
Equity	50%	70%
Preference	20%	15%
Debt	30%	15%

Find out the WACC based on (a) Book values (b) market values A to Z wishes to raise the capital for expansion programme with equity, preference and debt at 15%, 35% and 50%. What would be the cost of capital for the expansion programme?