Exhibit 1: Financial data Joan Hamilton plans to use in estimating VEC's WACC Data to be used in the calculation of the cost of borrowing with bonds: Par value =$1,000, non-callable Market value =$1,085.59 Coupon interest =9%, semiannual payment Remaining maturity =15 years New bonds can be privately placed without any flotation costs Data to be used in the calculation of the cost of preferred stock: Par value =$100 Annual dividend =9% of par Market value =$102 Flotation cost =5% Data to be used in the calculation of the cost of common equity: CAPM data: VEC's beta =1.2 The yield on T-bonds =5% Market risk premium =5% Stock price =$19.08 Last year's dividend (D0)=$1.00 Expected dividend growth rate =5% Bond-yeld-plus-risk-premium: Risk premum =3.5% Amount of retained eamings available =$80,000 Ameam of sew common stock to be issued =($300,000)(0,6)$80,000