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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)

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 % 25 %
Preferred stock 16.0 15
Common equity 20.0 60
Plan B
Debt 8.8 % 35 %
Preferred stock 16.8 15
Common equity 20.0 50
Plan C
Debt 9.0 % 45 %
Preferred stock 15.7 15
Common equity 10.5 40
Plan D
Debt 13.0 % 55 %
Preferred stock 16.4 15
Common equity 12.8 30

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.)

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