Assume it is considering the following Sauer Milk Ine wants to determine the minimum cost of capital point for the firm financial plans Cost (aftertax) Weights 20% 7.0% 14.0 18.0 10 70 30% 7.5% 14.5 190 10 60 Plan A Debt Preferred stock Common equity Plan B Debt Preferred stock Common equity Plan C Debt Preferred stock Common equity Plan D Debt Preferred stock Common equity 8.0% 14.7 10.8 10.0% 152 125 50% 10 40 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 Plan C Plan D a-2. Which of the four plans has the lowest weighted average cost of capital? Plan A Plan B Plan C 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 equily ratio increases