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Assume that Atlas Sporting Goods Inc. has $ 8 0 0 , 0 0 0 in assets. If it goes with a low - liquidity

Assume that Atlas Sporting Goods Inc. has $800,000 in assets. If it goes with a low-liquidity plan for the assets, it can earn a return of 15 percent, but with a high-liquidity plan, the return will be 12 percent. If the firm goes with a short-term financing plan, the financing costs on the $800,000 will be 8 percent; with a long-term financing plan, the financing costs on the $800,000 will be 10 percent.
a. Compute the anticipated return after financing costs on the most aggressive asset-financing mix.
Anticipated return
b. Compute the anticipated return after financing costs on the most conservative asset-financing mix.
Anticipated return
$1
c. Compute the anticipated return after financing costsjon the two moderate approaches to the asset-financing mix.
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