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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)

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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) Weights 6.ex 12.0 16.0 25% 15 60 6.6% 12.6 17.0 35% 15 5@ Plan A Debt Preferred stock Common equity Plan B Debt Preferred stock Common equity Planc Debt Preferred stock Common equity Plan D Debt Preferred stock Common equity 7.8% 19.7 15.5 45% 15 40 17.0% 20.4 17.6 55% 15 30 8-1. Compute the weighted average cost for four plans. (Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.) Plan A Weighted Cost % % Plan B Plan C Plan D 9 a-2. Which of the four plans has the lowest weighted average cost of capital? O Plan A Plan B Planc Plan D

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