Exhibit 1

Flight plan Consulting, Inc. (B)

Balance Sheet

December 31,2001

($000s)

Current Assets $1,500 Current Liabilities $400

Fixed Assets 1,500 Long-Term Debt 600

Common Stock 400

($1 par)

Retained Earnings 1,600

Total Assets $3,000 Total $3,000

Exhibit 2

Flight Plan Consulting, Inc.

Selected Capital Market, Company, Industry Data

FPC, Inc. may issue long-term debt at par, with a coupon rate of 5 percent; its existing $1,000 par bonds carried a coupon rate of 7% (see FPC, Inc. A).

The firms stock price had risen to $21.50 in recent weeks, and the increase in the firms net income after-tax is 16%.

A broad market average of common stocks had risen at an annualized rate of 15 percent in recent weeks. The return on that average is now 16%. (The yield on 10-year U.S.Government bonds is 5.01%. The stock of FPC, Inc. was 10 percent more volatile that the market average of stocks.) Flight Plan Consulting falls into the 30% (combined) tax bracket.

Many specialized consulting firms, if they experienced substantial net income growth, have a long-term debt to total asset ratio of approximately 40 percent on average.

Calculate the Marginal weighted average cost of capital (WACC) for FPC, INC.