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CCP capital point for the capital? 21. Sauer Milk Inc. wants to determine the minimum cost of capital firm. Assume it is considering the following

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CCP capital point for the capital? 21. Sauer Milk Inc. wants to determine the minimum cost of capital firm. Assume it is considering the following financial plans: Cost (aftertax) Weights 30% 4.0% 8.0 12.0 55 40% 4.5% 8.5 15 13.0 45 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 ....... 45% 5.0% 18.7 15 40 12.8 12.0% 50% 19.2 14.5 COU Cup Which of the four pl (Round to two places to Briefly discuss the than the other. of the four plans has the lowest weighted average cost of capital?! od to two places to the right of the decimal point.) ly discuss the results from Plan C and Plan D, and why one is better ecimal poinage cost of capital

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