Aggressive versus conservative seasonal funding strategy Dynabase Tool has forecast is total funding requirements for the coming year as shown in the following table a. Divide the firm's monthly lunding requirement into (1) a permanent component and (2) a seasonal component and find the monthly average for each of these components b. Describe the amount of long-term and short-term financing used to meet the total funds requirement under (1) angressive funding strategy and (2) a conservative Yuoding strategy Assume that under the aggressive strategy long term funds finance permanent needs and short form funds are used to finance seasonal needs c. Assuming that short-term funding costs 5% annually and that the cost of long-term funding 10% annually use the averages found in part a to calculate the total com of each of the strategies described in part b Assume that the firm can cam 3% on any excess cash balances d. Discuss the profitability-nisk trade-offs associated with the aggressive strategy and those associated with the conservative strategy a Divide the tum's monthly funding requirement into (1) a permanent component and (2) a seasonal component and find the monthly average for each of these components The monthly average of the firm's permanent funding requirement is $ 2.000.000 (Round to the nearest dollar) The monthly average of the firm's seasonal funding requirement is $ 4 083,333" (Round to the nearest dollar b. Describe the amount of long-term and short-term financing used to meet the total funds requirement under (1) an aggressive funding strategy and (2) conservative funding strategy Dynabase employs an aggressive funding strategy, the amount it will fund with short-term debt is $4,083 333 (Round to the contest dollar) of Dynaboso employs an aggressive funding strategy, the amount it will fund with long-term debt is $ 2.000.000 (Round to the nearest dolor Dynabase employs a conservative funding strategy, the amount it will fund with long-term debt is $ 15.000.000 (Round to the nearest dollar) c. Assuming that short-term funding costs 5% annually and that the cost of long-term funds is 10% annually, use the averages found in para lo calculate the total cost of each of the strategies described in art b Assume that the firm can earn 3% on and excess cash balances Click to select your answer and then click Check Answer Clear Fil Ghe All parts showing yung requirement into (1) a permanent component and (2) a seasonal component, and find the monthly average for each of these components b. Describe the amount of long-term and short-term financing used to meet the total funds requirement under (1) an aggressive functing strategy and (2) a conservar funding strategy. Assume that under the aggressive strategy long term fonds finance permanent needs and short form funds are used to franco seasonal noods c. Assuming that short term funding costs 5% annually and that the cost of long form funding is 10% annually use the averages found in part a to calculate the total cost of each of the strategies described in part b Assume that the firm can eam 3% on any excess cash balances d. Discuss the profitability risk trade-offs associated with the aggressive strategy and those associated with the conservative strategy er wou WE c. Assuming that short term funding costs 5% annually and that the cost of long-term funds is 10% annually use the averages found in part a to calculate the total cost of each of the strategies described in part b. Assume that the firm can earn 3% on any excess cash balances The total cost under the aggressive strategy is 3 404,167 (Round to the nearest dollar) The total cost under the conservative strategy is $ 1,232,500 (Round to the nearest dollar) d. In light of the prolitability risk tradeoffs associated with the aggressive strategy and those associated with the conservative strategy, which of the folkwing statements is false? (Select the best answer below) A. In this case, the aggressive strategy is more attractive because of the large difference between short term vs long-term rates OB. In this case, the conservative strategy is more attractive because it costs less OC in general an aggressive strategy entails moterisk because of interest rate swings and possible difficulties obtaining financing quickly OD in general, a conservative strategy will cost the firm more because it requires the firm to pay interest on unneeded funds Click to select your answer and then click Check Answer All parts showing Clear All Final Cha Aggressive versus conservative seasonal funding strategy Dynabase Tool has forecast is total funding requirements for the coming year as shown in the following table a. Divide the firm's monthly lunding requirement into (1) a permanent component and (2) a seasonal component and find the monthly average for each of these components b. Describe the amount of long-term and short-term financing used to meet the total funds requirement under (1) angressive funding strategy and (2) a conservative Yuoding strategy Assume that under the aggressive strategy long term funds finance permanent needs and short form funds are used to finance seasonal needs c. Assuming that short-term funding costs 5% annually and that the cost of long-term funding 10% annually use the averages found in part a to calculate the total com of each of the strategies described in part b Assume that the firm can cam 3% on any excess cash balances d. Discuss the profitability-nisk trade-offs associated with the aggressive strategy and those associated with the conservative strategy a Divide the tum's monthly funding requirement into (1) a permanent component and (2) a seasonal component and find the monthly average for each of these components The monthly average of the firm's permanent funding requirement is $ 2.000.000 (Round to the nearest dollar) The monthly average of the firm's seasonal funding requirement is $ 4 083,333" (Round to the nearest dollar b. Describe the amount of long-term and short-term financing used to meet the total funds requirement under (1) an aggressive funding strategy and (2) conservative funding strategy Dynabase employs an aggressive funding strategy, the amount it will fund with short-term debt is $4,083 333 (Round to the contest dollar) of Dynaboso employs an aggressive funding strategy, the amount it will fund with long-term debt is $ 2.000.000 (Round to the nearest dolor Dynabase employs a conservative funding strategy, the amount it will fund with long-term debt is $ 15.000.000 (Round to the nearest dollar) c. Assuming that short-term funding costs 5% annually and that the cost of long-term funds is 10% annually, use the averages found in para lo calculate the total cost of each of the strategies described in art b Assume that the firm can earn 3% on and excess cash balances Click to select your answer and then click Check Answer Clear Fil Ghe All parts showing yung requirement into (1) a permanent component and (2) a seasonal component, and find the monthly average for each of these components b. Describe the amount of long-term and short-term financing used to meet the total funds requirement under (1) an aggressive functing strategy and (2) a conservar funding strategy. Assume that under the aggressive strategy long term fonds finance permanent needs and short form funds are used to franco seasonal noods c. Assuming that short term funding costs 5% annually and that the cost of long form funding is 10% annually use the averages found in part a to calculate the total cost of each of the strategies described in part b Assume that the firm can eam 3% on any excess cash balances d. Discuss the profitability risk trade-offs associated with the aggressive strategy and those associated with the conservative strategy er wou WE c. Assuming that short term funding costs 5% annually and that the cost of long-term funds is 10% annually use the averages found in part a to calculate the total cost of each of the strategies described in part b. Assume that the firm can earn 3% on any excess cash balances The total cost under the aggressive strategy is 3 404,167 (Round to the nearest dollar) The total cost under the conservative strategy is $ 1,232,500 (Round to the nearest dollar) d. In light of the prolitability risk tradeoffs associated with the aggressive strategy and those associated with the conservative strategy, which of the folkwing statements is false? (Select the best answer below) A. In this case, the aggressive strategy is more attractive because of the large difference between short term vs long-term rates OB. In this case, the conservative strategy is more attractive because it costs less OC in general an aggressive strategy entails moterisk because of interest rate swings and possible difficulties obtaining financing quickly OD in general, a conservative strategy will cost the firm more because it requires the firm to pay interest on unneeded funds Click to select your answer and then click Check Answer All parts showing Clear All Final Cha