Market Value of Eq uity The funds for equity shareholders are obtained from, new issues of shares, and from retained earnings. Retained earnings have a cost. This is the opportunity cost, the dividend forgone try shareholders Outstanding Shares 3.5 million Current Price per share $24.84 Market Value of share holding [3.5M at $24.34) $211,140,{i Retained Earnings 5 29,532,000 Total 1'ul'alue of Equity W MARKET VALUE CAPITAL STRUCTURE Method of Marl-mt 1iiialue Peroentage Financing 96 Short Term Debt 29,010,000 Long Term Debt 113,539,299r 22% Preferred Stock 30,010,000 9% Common Stock 240,?2?,000 E_ Total Financin 419,235,291