Calculate the Paper Company's Weighted Average Cost of Capital (WACC)

Exhibit 1 Paper Company Cost-of-Capital Information Interest Rates: January 15, 2018 1-year 1.15% Historical average 6.000 0.49% 1 .46% 2.04% 2.82% Aaa Aa 1-year year 10-year 30-year 2.45% 3.38% 3.85% 5.05% Springfield Paper Financial Dat:a Bank loan payable (LIBOR + 1%) Long-term debt Common equity Retained earnings 500 2,500 500 2,000 Shares outstanding (millions) Book value per share Recent market value per share 500 $5.00 $24.00 Bond rating Beta 1.10