PLEASE SHOW ALL CALCULATION STEPS IN EXCEL:

Harrison Holdings Inc. capital structure consists of 20% in Bond I with YTM of 10%, 15% in Bond II with YTM of 13% and rest is common stock equity financing. 1-year risk free rate is 3%, expected return on S&P 500 index is 8% and estimated equity beta for HHI is 2.1. Companys tax rate is 40%. A) Estimate Harrison Holdings Inc. WACC. B) Re-estimate WACC if HH Inc. opportunistically increases usage of Bond I to 30% and Bond II to 20% (Assume costs of bonds wont change.