Use the following information for Parts a and b

This-Is-It Co has the following capital structure: 7.5% First Mortgage Bonds - $65,000,000 outstanding. % Senior sub-ordinated Bonds - $58,000,000 outstanding. Class A preferred stock paying 5,2%, $22,000,000 outstanding, Class B preferred stock paying 5.8%, $15,000,000 outstanding Common Equity $80,000,000 outstanding paying 14%. Its tax rate is 34%.

Part la: What is This-Is-It Co's WACC?

Part 1b: This-Is-It Co is considering the issuance of $35,000,000 project financing bonds for an up- coming capital project. The bonds will be priced at 9.25%. What is This-Is-It Co's new WACC with this issue?