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	%		30	%
Preferred stock		8.0			15
Common equity		12.0			55
Plan B
Debt		4.5	%		40	%
Preferred stock		8.5			15
Common equity		13.0			45
Plan C
Debt		5.0	%		45	%
Preferred stock		18.7			15
Common equity		12.8			40
Plan D
Debt		12.0	%		50	%
Preferred stock		19.2			15
Common equity		14.5			35

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.) a-2. Which of the four plans has the lowest weighted average cost of capital?

multiple choice

Plan A

Plan B

Plan C

Plan D