Assume that Apollo Sporting Goods has $900,000 in assets. If it goes with a low liquidity plan for the assets it can earn a return of 16.00 percent, but with a high liquidity plan the return will be 14.00 percent. If the firm goes with a short-term financing plan, the financing costs on the $900,000 will be 6.00 percent; with a long-term financing plan the financing costs will be 8.00 percent.

Required:

Compute the anticipated return (in dollars) for each of the following Liquidity/Financing mixes:

	Low Liquidity			High Liquidity
		Quadrant 1			Quadrant 2
	Short-term
Financing
Plan		Quadrant 3			Quadrant 4
	Long-term

Which quadrant would be considered the most aggressive liquity/financing mix? (Click to select) quardant 1 quardant 2 quardant 3 quardant 4

Which quadrant would be considered the most conservative liquity/financing mix? (Click to select) quardant 1 quardant 2 quardant 3 quardant 4