Levered Part of Tn Exhibit 5: Computing Minimum WACC for Blaine over a Range of Capital Structures Debt/ Debt Unlevered Cost of Cost of Cap. Equity Beta Beta Equity 1 Existing Proposal -31.7% -24.1% 0.74 0.63 Debt WACC 8.71% 5.02% 6.9% 7.4% 0.74 0.79 8.71% 6.75% AAA 12.8% 0.74 0.83 8.71% Assumptions Marginal Tax Rate Risk-Free Rate 40.00% 5.02% Market Risk Premium 5.00% Debt Beta 0.00 AA- 16.6% 0.74 0.86 8.71% A 26.2% 0.74 0.93 8.71% BBB+ 28.8% 0.74 0.95 8.71% BB 39.5% 0.74 1.03 8.71% B+ 44.6% 0.74 1.07 8.71% Part of TN Exhibit 5 10-year Treasury Interest Coverage 5.02% Debt Default Ratio Rating Spread >13.0 AAA 0.65% 9.5-12.0 AA- 0.80% 7.0-9.5 A 0.85% 5.0-7.00 BBB+ 1.83% 4.0-5.0 BB 2.98% 2.50-4.0 B+ 4.10% Use this table to calculate cost of debt at different debt rating. For example, cost of debt for AAA =10-year treasuary insterest + default spread for AAA +