The following table gives Foust Company's earnings per share for the last 10 years. The common stock, 7.4 million shares outstanding, is now (1/1/17) selling for $75 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.)

Year	EPS	Year	EPS
2007	$3.90	2012	$5.73
2008	4.21	2013	6.19
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 55% debt and 45% equity.

1. CalculateFoust'safter-taxcostofdebt.Roundyouranswertotwodecimalplaces. 6.6%
2. CalculateFoust'scostofcommonequity.Calculatethecostofequityasr_s=D₁/P₀+g.Roundyouranswertotwodecimalplaces.Donotroundyourintermediatecalculations. ???%
3. Find Foust's WACC. Round your answer to two decimal places. Do not round your intermediate calculations.????%