WACC The following table gives Foust Company's earnings per share for the last 10 years. The common stock, 8.1 million shares outstanding, is now (1/1/17) selling for $70 per share. The expected dividend at the end of the current year (12/31/17) is 55% 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 2007 $3.90 2008 4.21 2009 4.55 2010 2011 EPS Year 2012 $5.73 2013 2014 2015 2016 7.80 EPS 6.19 6.68 4.91 7.22 5.31 The current interest rate on new debt is 8%; Foust's marginal tax rate is 40%; and its target capital structure is 60% debt and 40% 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/Po g. Round your answer to two decimal places. Do not round your intermediate calculations. b. Find Foust's WACC. Round your answer to two decimal places. Do not round your intermediate calculations