Albert Corp. wants to calculate its weighted average cost of capital (WACC). The company's CFO has collected the following information: The company's long-term bonds currently offer a yield to maturity of 8 percent. The coupon rate of interest on bonds is 9%. The company's stock price is $32 a share (Po= $32). The company recently paid a dividend of $2 a share (Do = $2.00). The dividend is expected to grow at a constant rate of 6 percent a year (g = 6%). The company's target capital structure is 75 percent equity and 25 percent debt. The company's tax rate is 30 percent. Required: a) Using the constant dividend growth model, calculate the company's cost of equity b) Calculate the company's weighted average after-tax cost of capital (WACC). c) In your calculation of WACC, explain your choice of interest rate on bonds (borrowings). Did you use the 8% yield to maturity or the 9% coupon rate? d) Describe the primary use of the WACC when making capital budgeting decisions. e) Explain whether or not a company should use the SAME WACC to evaluate ALL of its investment proposals