The following table gives Foust Company's earnings per share for the last 10 years. The common stock, 7.6 million shares outstanding, is now (1/1/17) selling for $72 per share. The expected dividend at the end of the current year (12/31/17) is 60% of the 2016 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.)

YearEPSYearEPS2007$3.90 2012$5.73 20084.21 20136.19 2009 4.55 2014 6.68 2010 4.91 2015 7.22 2011 5.31 2016 7.80 The current interest rate on new debt is 11%; Foust's marginal tax rate is 40%; 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.
2. Calculate Foust's cost of common equity. Calculate the cost of equity as rs= D1/P0+ g. Round your answer to two decimal places. Do not round your intermediate calculations
3. Find Foust's WACC. Round your answer to two decimal places. Do not round your intermediate calculations.