The following table gives Foust Company's earning per share for the last 10 years. The common stock, 7.8 million shares outstanding is now (1 1/13) selling for $65. per share. The expected dividend at the end of the current yaer (12/31/13) is 55% of the 2012 EPS. Because investors expect past trends to continue, g may be based on the historical earnings growth rate. (Note, 9 years shown) Year 2003 EPS $3.90; 2004 EPS $4.21, 2005, EPS $4.55, 2006, EPS $4.91; 2007 EPS $5.31; 2008 EPS $5.73,; 2009 EPS $6.19' 2010 EPS $6.68; 2011 EPS 7.22; 2012 E PS $7.80. The current interest rate on the new debt is 9% The marginal tax rate is 40%, its target capital structure is 40% debt and 60% equity. a. Calculae Foust's after tax cost of debt and common equity . Calculate the cost of equity as Rs=D1/P0+g. b. Find Foust's WACC.