The following table gives Foust Company's earnings per share for the last 10 years. The common stock, 6.8 million shares outstanding, is now (1/1/22) selling for $72.00 per share. The expected dividend at the end of the current year (12/31/22) is 60% of the 2021 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 2012 $3.90

2017 $5.73 2013 4.21

2018 6.19 2014 4.55

2019 6.68 2015 4.91

2020 7.22 2016 5.31

2021 7.80 The current interest rate on new debt is 10%; Foust's marginal tax rate is 25%; and its target capital structure is 35% debt and 65% 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.

%