eBook The following table gives Foust Company's earnings per share for the last 10 years. The common stock, 8.3 million shares outstanding, is now (1/1/20) selling for $64.00 per share. The expected dividend at the end of the current year (12/31/20) is 45% of the 2019 EPS. Because investors expect past trends to continue, 9 may be based on the historical earnings growth rate. (Note that 9 years of growth are reflected in the 10 years of data.) Year EPS Year EPS 2015 $5.73 2010 2011 $3.90 4.21 2016 6.19 2012 4.55 2017 6.68 2014 2013 4.91 2018 7.22 5.31 2019 7.80 The current interest rate on new debt is 8%; Foust's marginal tax rate is 25%; and its target capital structure is 35% debt and 65% equity. a. Calculate Foust's after-tax cost of debt. Round your answer to two decimal places. Calculate Foust's cost of common equity Calculate the cost of equity as rs - D/P, + g. Do not round Intermediate calculations. Round your answer to two decimal places. 13.84 % b. Find Foust's WACC. Do not round intermediate callations. Round your answer to two decimal places 11.90 %