Assume that Hogan Surgical Instruments Co. has $2,400,000 in assets. If it goes with a low-liquidity plan for the assets, it can earn a return of 17 percent, but with a high-liquidity plan, the return will be 13 percent. If the firm goes with a short-term financing plan, the financing costs on the $2,400,000 will be 9 percent, and with a long-term financing plan, the financing costs on the $2,400,000 will be 11 percent.

a.	Compute the anticipated return after financing costs with the most aggressive asset-financing mix.

Anticipated return

$

b.	Compute the anticipated return after financing costs with the most conservative asset-financing mix.

Anticipated return

$

c.	Compute the anticipated return after financing costs with the two moderate approaches to the asset-financing mix.

	Anticipated Return
Low liquidity	$
High liquidity	$