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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 Plan A Debt 7.0 205 Preferred stock 14.0 10 Connon equity 18.0 70 Plan B Debt 7.85 304 Preferred stock 14.8 10 Connon equity 19.0 60 Plan C Debt 8.09 489 Preferred stock 14.7 10 Connon equity 9.5 50 Plan D Debt 12.05 50 Preferred stock 15.4 le Common equity 11.8 40 2-1. 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 Pian A Plan B Planc Plan D % 3-2. Which of the four plans has the lowest weighted average cost of capital? Plan A Plan B Planc Plan D

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