ABC Corporation plans to control the cost of its capital and decides that the weighted average cost of capital, WACC, should be around 12%. ABC also has a target capital structure of 50% common stock.
Given that:
 ABC's cost of equity is 16.6%;
 its cost of preferred stock is 8%;
 its cost of debt is 10%; and
 its tax rate is 30%

Based on the information above, PLANT's cost of preferred stock is the lowest. Do you agree that PLANT should use more preferred stock financing? Please explain.