A44 1 Weighted average cost of capital Tounst Exchange Inc. wants to determine the minimum cost of capital point for the firm. Assume it is considening the following financial plans: 3 Cost Veights 6 Plan 7 Debt 8 Prefemed stock 10 Plan B 11 | Dete 12 Prefented stock 13 Common qut 14 Plan C 15 Debt 16 Prelemed stock 17 Common equity 18 Plan tD 9 Debt 20 Prelemed stock 21 Common equity 500% 45% 23 a Which of the four plans has the lowest weighted average cost of capital? (Round to two 24 places to the right of the decimal point.) 25 Briefly discuss the results from Plan C and Plan D, and why one is better than the other 26 27 Plan A Plan B After Tax Cost Weight: WACC After Tax Cost Weights WAC Debt Preferred 30 Debt Preferred Common 31 34 36 Plan C Plan D After After