EOC Questions (CNOW) ment: Chapter 10 - EOC Questions (CNOW) Assignment Score: 13.15% Save Submit Assignment for Grading ons Problem 10.20 (WACC) Question 9 of 10 Check My Work (2 remaining) eBook The following table gives Foust Company's earnings per share for the last 10 years. The common stock, 7.8 million shares outstanding, is now (1/1/20) selling for $63.00 per share. The expected dividend at the end of the current year (12/31/20) is 50% of the 2019 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 2010 $3.90 2015 $5.73 2011 4.21 2016 6.19 2012 4.55 2017 6.68 2013 4.91 2018 7.22 2014 5.31 2019 7.80 The current interest rate on new debt is 8%; Foust's marginal tax rate is 25%; 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, Calculate Foust's cost of common equity. Calculate the cost of equity as ri=D1/Po+g. Do not round intermediate calculations. Round your answer to two decimal places. 90 b. Find Fouse's WACC. Do not round Intermediate calculations, Round your answer to two decimal places