Assume that Hogan Surgical Instruments Co. has $3,500,000 in assets. If it goes with a low-liquidity plan for the assets, it can earn a return of 18 percent, but with a high-liquidity plan, the return will be 14 percent. If the firm goes with a short-term financing plan, the financing costs on the $3,500,000 will be 10 percent, and with a long-term financing plan, the financing costs on the $3,500,000 will be 12 percent.

plan , the financing costs on the $3. 500, 40 0 will be 10 percent , and with a long - term financing plan , the financing costs on the $3. 500, 0 00 wil be 12 percent .` 2 . Compute the anticipated return after financing costs with the most aggressive asset- financing mix . Anticipated return 6 . 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