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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 7.0% 14.0 18.0 20% 10 70 30% 7.5% 14.5 19.0 10 60 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 8.0% 14.7 10.8 40% 10 50 10.0% 15.2 12. 5 50% 10 40 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.) Weighted Cost 15.40% Plan A Plan B Plan C Plan D 10.07 % 11.52 %

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