The following table gives Foust Company's earnings per share for the last 10 years. The common stock, 8.9 million shares outstanding, is now (1/1/20) selling for $59.00 per share. The expected dividend at the end of the current year (12/31/20) is 40% of the 2019 EPS. Because investors expect past trends to continue, g 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
2010	$3.90		2015	$5.73
2011	4.21		2016	6.19
2012	4.55		2017	6.68
2013	4.91		2018	7.22
2014	5.31		2019	7.80

The current interest rate on new debt is 9%; Foust's marginal tax rate is 25%; and its target capital structure is 40% debt and 60% equity.

1. 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 r_s = D₁/P₀ + g. Do not round intermediate calculations. Round your answer to two decimal places.

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2. Find Foust's WACC. Do not round intermediate calculations. Round your answer to two decimal places.