WACC The following table gives Foust Company's earnings per share for the last 10 years. The common stock, 7.6 million shares outstanding, is now (1/1/17) selling for $72 per share. The expected dividend at the end of the current year (12/31/17) is 60% of the 2015 EPS. Because investors expect past trends to continue, g may be based on the historical earnings growth rate. (Note that g years of growth are reflected in the 10 years of data.) Year 2007 2008 200g 2010 2011 $3.go 4.21 4.55 5.31 Yea r 2012 2013 2014 2015 2015 $5.73 6.19 6.68 7.22 7.80 The current interest rate on new debt is 11%; 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. Round your answer to two decimal places. Calculate Foust's cost of common equity. Calculate the cost of equity as rs = decimal places. Do not round your intermediate calculations. 14.33 Dl/Po + p. Round your answer to two b. Find Foust's WACC. Round your answer to two decimal places. Do not round your intermediate calculations.