The following table gives Foust Company's earnings per share for the last 10 years. The common stock, 6.0 million shares outstanding, is now (1/1/15) selling for $50 per share. The expected dividend at the end of the current year (12/31/15) is 45% of the 2014 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.) The current interest rate on new debt is 8%; Foust's marginal tax rate is 40%; and its target capital structure is 40% debt and 60% equity. a. Calculate Foust's after-tax cost of debt. % Calculate Foust's cost of common equity. Calculate the cost of equity as r_s = D_1/P_0 + g. % b. Find Foust's WACC. %