We are given the following information for Aravind Electronics Ltd., a electronic appliances manufacturer based out of Hyderabad, India. - Tax rate is 35 percent. - Debt: 8,0006.5 percent coupon bonds outstanding, $1,000 par value, 20 years to maturity, selling for 92 percent of par; the bonds make semiannual payments. - Common stock: 250,000 shares outstanding, selling for $57 per share; the beta is 1.05 . - Preferred stock: 15,000 shares of 5 percent preferred stock outstanding, currently selling for $93 per share. - Market: 8 percent market risk premium and 4.5 percent risk-free rate a) What is Aravind's WACC? b) Recently the CEO of Aravind Electronics announced that the company was planning to diversify into the Pharmaceuticals industry. Can Aravind use the WACC calculated in part (a) above to evaluate the Pharmaceuticals project? Why or why not