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)WeightsPlan ADebt5.0%20%Preferred stock10.010Common equity14.070Plan BDebt5.2%30%Preferred stock10.210Common equity15.060Plan CDebt6.0%40%Preferred stock18.710Common equity11.550Plan DDebt16.0%50%Preferred stock19.410Common equity13.640

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.)

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