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The current interest rate on new debt is 12%; Foust's marginal tax rate is 25%; and its target capital structure is 30% debt and 70%

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The current interest rate on new debt is 12%; Foust's marginal tax rate is 25%; and its target capital structure is 30% debt and 70% 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=D1/P0+g. Do not round intermediate calculations. Round your answer to two decimal places. % b. Find Foust's WACC. Do not round intermediate calculations. Round your answer to two decimal places. %

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