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8. Callison Airlines is deciding whether to pursue a restricted or relaxed current asset investment policy. Callison's annual sales are expected to total $3.6 million,

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8. Callison Airlines is deciding whether to pursue a restricted or relaxed current asset investment policy. Callison's annual sales are expected to total $3.6 million, its fixed assets turnover ratio equals 4.0, and its debt and common equity are each 50 percent of total assets. EBIT is $150,000, the interest rate on the firm's debt is 10 percent, and the firm's tax rate is 40 percent. If the company follows a restricted policy, its total assets turnover will be 2.5. Under a relaxed policy, its total assets turnover will be 2.2. If the firm adopts a restricted policy, how much will it save in interest expense?* a. $ 3,233 O b. $ 6,175 O c. $ 9,818 O d. $ 7,200 O e. $10,136

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