Question: + lest Sauer Milk Inc. wants to determine the minimum cost of capital point for the firm Assume it is considering the following fancial plans

 + lest Sauer Milk Inc. wants to determine the minimum cost
of capital point for the firm Assume it is considering the following

+ lest Sauer Milk Inc. wants to determine the minimum cost of capital point for the firm Assume it is considering the following fancial plans Cost Cafterta) Weights 7.0 15 14.0 10 18.0 25 Plan A Debt Preferred stock Common equity Plan Debt Preferred stock Connon equity Planc Debt Preferred stock Common equity Plan D Debt Preferred stock Common equity 7.5% 14.5 19.0 25 10 65 8.ox 21.2 15.8 35 10 55 15.0 22.2 17.5 458 10 45 6.1. Compute the weighted average cost for four plons (Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.) Weighted Cost Plan A Plane Planc Plan 96 5 .-1. Compute the weighted average cost for four plans. (Do not round intermediate calculations. Input your answers as a percer rounded to 2 decimal places.) 2 points Plan A Plan B Planc Plan D Weighted Cost % % % % a-2. Which of the four plans has the lowest weighted average cost of capital? Plan D Plan B Plan C Plan A

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