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Sauer Milk Inc. wants to determine the minimum cost of capital point for the firm. Assume it is considering the following financial plans: Cost (aftertax)

Sauer Milk Inc. wants to determine the minimum cost of capital point for the firm. Assume it is considering the following financial plans:

Cost (aftertax) Weights
Plan A
Debt 4.0 % 10 %
Preferred stock 8.0 5
Common equity 12.0 85
Plan B
Debt 4.5 % 20 %
Preferred stock 8.5 5
Common equity 13.0 75
Plan C
Debt 5.0 % 30 %
Preferred stock 8.7 5
Common equity 8.8 65
Plan D
Debt 7.0 % 40 %
Preferred stock 9.2 5
Common equity 10.5 55

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 11.00 %
Plan B 11.00 %
Plan C %
Plan D %

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