Sauer Milk Inc. wants to determine the minimum cost of capital point for the firm. Assume it is considering the following financial plans: (aftertax) Weights Plan A Debt Preferred stock Common equity Plan B Debt Preferred stock Common equity Plan C Debt Preferred stock Common equity Plan D Debt Preferred stock Common equity 70% 14.0 18.0 15% 10 75 7.5% 14.5 19.0 25% 10 65 80% 21.7 15.8 10 150% 22.2 17.5 10 45 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 Plan A Plan B Plan C Plan D a-2. Which of the four plans has the lowest weighted average cost of capital? O Plan A O Plan B O Plan C O Plan D b. What is the relationship between the various types of financing costs and the debt-to-equity ratio? O All types of financing costs increase as the debt-to-equity ratio increases O All types of financing costs decrease as the debt-to-equity ratio increases