Problem 10.20 (WACC) Question 10 Check My Work remaining) ook The following table gives Foult Company's earnings per share for the last 10 years. The common stock, 6 milion shares outstanding, snow (1/1/23) setting for $7.00 per dare. The capace dividend the end of the current year' (12/31/22) 45% of the 2021 EPS. Because investors expect past tends to contine may be based on the historical curringe growth rate. (Note that years of growth are reflected in the 10 years of M) Year EPS Year EPS 2012 $3.90 2017 $5.73 2013 2018 6.19 2014 4.55 2019 6.68 2015 4.91 2020 7.22 2016 5.31 2021 7.80 The current interest rate on new debitis 10%; Foust's marginal tax rate is 25% and its target capital structures 40% debt and 60% equity 1. Calculate Fount's ster-tax cost of debt Round your answer to two decimal places "Hi Calculate Fount's cost of common equity Calculate the cost of equity as - Di/P. Do not round Wermediate calculations, Round your answer to two decima placus. b. Find Foust's WACC. Do not round Intermediate calculations. Round your answer to two decimal places