IBM is considering capital restructuring, issuing $10b bond and repurchasing common stocks using the proceeds. Calculate the current WACC and the new WACC after the restructuring. IBMs current capital structure and other information are as follows:

Stock price: $150

# of shares: 900 million

Debt: $35b

Beta (equity): 0.90

Tax rate: 20%

MRP: 6%

Rf: 3%

Rd: 4% (After the issue of $10b bond, the cost of debt will increase to 4.2%.)