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		8.0	%		10	%
Preferred stock		16.0			5
Common equity		20.0			85
Plan B
Debt		8.5	%		20	%
Preferred stock		16.5			5
Common equity		20.0			75
Plan C
Debt		9.0	%		30	%
Preferred stock		9.8			5
Common equity		16.8			65
Plan D
Debt		8.0	%		40	%
Preferred stock		15.8			5
Common equity		18.5			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.)

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

• Plan A

• Plan B

• Plan C

• Plan D