The following table gives Foust Company's earnings per share for the last 10 years. The common...

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The following table gives Foust Company's earnings per share forthe last 10 years. The common stock, 8.6 million sharesoutstanding, is now (1/1/17) selling for $77 per share. Theexpected dividend at the end of the current year (12/31/17) is 50%of the 2016 EPS. Because investors expect past trends to continue,g may be based on the historical earnings growth rate. (Note that 9years of growth are reflected in the 10 years of data.)
Year EPS Year EPS
2007 $3.90 2012 $5.73
2008 4.21 2013 6.19
2009 4.55 2014 6.68
2010 4.91 2015 7.22
2011 5.31 2016 7.80
The current interest rate on new debt is 9%; Foust's marginaltax rate is 40%; and its target capital structure is 30% debt and70% equity.
Calculate Foust's after-tax cost of debt. Round your answer totwo decimal places.
%

Calculate Foust's cost of common equity. Calculate the cost ofequity as r_s = D₁/P₀ + g. Roundyour answer to two decimal places. Do not round your intermediatecalculations.
%

Find Foust's WACC. Round your answer to two decimal places. Donot round your intermediate calculations.
%

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The following table gives Foust Company's earnings per share forthe last 10 years. The common stock, 8.6 million sharesoutstanding, is now (1/1/17) selling for $77 per share. Theexpected dividend at the end of the current year (12/31/17) is 50%of the 2016 EPS. Because investors expect past trends to continue,g may be based on the historical earnings growth rate. (Note that 9years of growth are reflected in the 10 years of data.)YearEPSYearEPS2007$3.902012$5.7320084.2120136.1920094.5520146.6820104.9120157.2220115.3120167.80The current interest rate on new debt is 9%; Foust's marginaltax rate is 40%; and its target capital structure is 30% debt and70% equity.Calculate Foust's after-tax cost of debt. Round your answer totwo decimal places.%Calculate Foust's cost of common equity. Calculate the cost ofequity as rs = D1/P0 + g. Roundyour answer to two decimal places. Do not round your intermediatecalculations.%Find Foust's WACC. Round your answer to two decimal places. Donot round your intermediate calculations.%

Year	EPS	Year	EPS
2007	$3.90	2012	$5.73
2008	4.21	2013	6.19
2009	4.55	2014	6.68
2010	4.91	2015	7.22
2011	5.31	2016	7.80