million shares outstanding, is now (1/1/22) selling for $69.00 per share. The expected dividend at the end of the current year (12/31/22) is 65% of the 2021 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 2012 $3.90 2017 $5.73 2013 4.21 2018 6.19 2014 4.55 2019 6.68 2015 4.91 2020 7.22 2021 2016 5.31 7.80 The current interest rate on new debt is 10%; Foust's marginal tax rate is 25%; and its target capital structure is 55% debt and 45% equity. a. Calculate Foust's after-tax cost of debt. Round your answer to two decimal places. 3 % Calculate Foust's cost of common equity. Calculate the cost of equity as rs = D./Po + 9. Do not round Intermediate calculations, Round your answer to two decimal places. 15.35 % b. Fin Foust's WACC. Do not round intermediate calculations. Round your answer to two decimal places. 15.35 %