WACC = Component % x Specific Cost Problem: The capital structure of ADF Corporation is as follows: Loans payable (6%) P300,000 5% Preference shares 100,000 Ordinary Shares 200,000 Retained Earnings 400,000 Total 1,000,000 Tax rate 32%. Dividend growth rate 4% Current market price per share PS P62.50 OS P40 Dividend per share PS OS P2 P5 Required: Compute the WACC Computation