Question: Problem 1 1 - 2 1 ( Algo ) Weighted average cost of capital [ LO 1 1 - 1 ] Sauer Milk Incorporated wants

Problem 11-21(Algo) Weighted average cost of capital [LO11-1]
Sauer Milk Incorporated wants to determine the minimum cost of capital point for the firm. Assume it is considering the follovyin financial plans:
\table[[\table[[Cost],[(aftertax)]],Weights],[Plan A,5.0%,20%,,],[Debt,10.0,10,,],[Preferred stock,14.0,70,,],[Common equity,,,,],[Plan B,5.2%,30%,,],[Debt,10.2,10,,],[Preferred stock,15.0,60,,],[Common equity,,,,],[Plan C,6.0%,40%,,],[Debt,15.7,10,,],[Preferred stock,11.6,50,,],[Common equity,,,,],[Plan D,12.0%,50%,,],[Debt,16.6,10,,],[Preferred stock,13.6,40,,],[Common equity,,,,]]
a-1. Compute the weighted average cost for four plans.
Note: Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.
\table[[,Weighted Cost],[Plan A,,%
 Problem 11-21(Algo) Weighted average cost of capital [LO11-1] Sauer Milk Incorporated

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