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Assume that Atlas Sporting Goods Inc has $960,000 in assets If it goes with a low-liquidity plan for the assets. it can earn a return

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Assume that Atlas Sporting Goods Inc has $960,000 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-iquidity plan the return will be 10 percent. If the firm goes with a short-term financing plan, the financing costs on the $960,000 wil be 7 percent, and with a long-term financing plan the financing costs on the $960,000 will be 9 percent. 0. Compute the anticipated return after financing costs with the most aggressive asset-financing mix. b. Compute the anucipated fetum atterfinancing costs with the most conservative asset financing mix. c. Compute the anticipated return after financing costs with the two moderate approaches to the asset-financing mix. d. If the firm used the most aggressive asset financing mixdescribed in part a and had the anticipated retum you computed for part at What would earnings per share be if the tax rate on the anticipated return was 30 percent and there were 20.000 shares outstanding? (Round your answer to 2 decimol places.) 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.) e-2. Would the conservative mix have higher or lower eamings per share than the aggressive mix? Hignes Lower

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