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Assume that Hogan Surgical Instruments Company has $ 2 , 5 0 0 , 0 0 0 in assets. If it goes with a low

Assume that Hogan Surgical Instruments Company has $2,500,000 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 $2,500,000 will be 10 percent, and with a long-term financing plan, the financing costs on the $2,500,000 will be 12 percent
a. Compute the anticipated return after financing costs with the most aggressive asset-financing mix.
Anticipated return
b. Compute the anticlpated return after financing costs with the most conservative asset-financing mix.
\table[[Anticipated return,?bar(s),150.000]]
c. Compute the anticipated return after financing costs with the two moderate approaches to the asset-financing mix,
\table[[,Anticipated Return,],[Low liquidity,$,200,000],[High liquidity,$,50,000]]
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