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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 7.0 % 20 %
Preferred stock 14.0 10
Common equity 18.0 70
Plan B
Debt 7.8 % 30 %
Preferred stock 14.8 10
Common equity 19.0 60
Plan C
Debt 8.0 % 40 %
Preferred stock 14.7 10
Common equity 9.5 50
Plan D
Debt 12.0 % 50 %
Preferred stock 15.4 10
Common equity 11.8 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.)

Plan A ________ %
Plan B _______ %
Plan C ________%
Plan D ________%

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