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A company has determined the following factors relative to its asset and financing mix. The firm earns 10% annually on current assets an 20% annually
A company has determined the following factors relative to its asset and financing mix. The firm earns 10% annually on current assets an 20% annually on fixed assets. It pays 13% annually on current liabilities and 17% annually on long-term funds. What are the firm's average seasonal funds requirements, financing costs according to the aggressive and conservative financing strategy? The firm's current,fixed and total assets for the last 6 months of the previous years.are as follows:
MONTH | CURRENT ASSETS ($) | FIXED ASSETS ($) | TOTAL ASSETS ($) |
July | 45 000 | 100 000 | 145 000 |
August | 40 000 | 100 000 | 140 000 |
September | 50 000 | 100 000 | 150 000 |
October | 55 000 | 100 000 | 155 000 |
November | 60 000 | 100 000 | 160 000 |
December | 75 000 | 100 000 | 175 000 |
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