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Assume that Atlas Sporting Goods Inc. has $890,000 in assets. If it goes with a low-liquidity plan for the assets, it can earn a return

Assume that Atlas Sporting Goods Inc. has $890,000 in assets. If it goes with a low-liquidity plan for the assets, it can earn a return of 13 percent, but with a high-liquidity plan the return will be 10 percent. If the firm goes with a short-term financing plan, the financing costs on the $890,000 will be 7 percent, and with a long-term financing plan, the financing costs on the $890,000 will be 8 percent

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e-1. Now assume the most conservative asset-financing mix described in part b will be utilized. The tax rate will be 30 percent. Also assume there will only be 5,000 shares outstanding. What will earnings per share be? (Round your answer to 2 decimal places.) Earnings per share e-2. Would the conservative mix have higher or lower earnings per share than the aggressive mix? Lower Higher

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