3.12 points Sauer Milk Inc. wants to determine the minimum cost of capital point for the firm. Assume it is considering the following financial plans: Weighs 15% Pwed Common Plan 140 180 75% 14.5 Preferred stock Com Planc 21.7 Preferred stock Como qui 158 15.0% 45% Pred sock Common equity a-1. Compute the weighted average cost for four plans. (Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.) Weighted Cost Plan A Plan B Planc Plan D a-2. Which of the four plans has the lowest weighted average cost of capital? Plan OPB Panc Plan D b. What is the relationship between the various types of financing costs and the debt- to-equity ratio? All types of financing costs increase as the debt-to-equity ratio increases All types of financing costs decrease as the debt-to-equity ratio increases Hints References eBook & Resources