The following tabulation gives earnings per share figures for Pappas Manufacturing during the preceding 10 years. The firm's common stock, 140,000 shares outstanding, is now selling for $50 a share, and the expected dividend for the coming year (1999) is 50 percent of EPS for the year. Investors expect past trends to continue, so g may be based on the historical earnings growth rate. The current interest rate on new debt is 8 percent. The firm's marginal federal-plus-state tax rate is 40 percent. The firm's market value capital structure, considered to be optimal, is as follows: a. Calculate the firm's after-tax cost of new debt and of common equity, assuming new equity comes only from reinvested cash flow. Calculate the cost of equity, assuming constant growth; that is, ks=D1P0+8=ks. b. Find the firm's WACC, assuming no new common stock is sold