WACC The following table gives Foust Company's earnings per share for the last 10 years. The common stock, 6.9 million shares outstanding, is now (1/1/12) selling for $66 per share. The expected dividend at the end of the current year (12/31/12) is 45% of the 2011 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 2002 $3.90 2007 $5.73 2003 4.21 2008 6.19 2004 4.55 2009 6.68 2005 4.91 2010 7.22 2006 5.31 2011 7.80 The current interest rate on new debt is 11%; Foust's marginal tax rate is 40%; and its target capital structure is 30% debt and 70% equity. a. Calculate Foust's after-tax cost of debt. Round your answer to two decimal places