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Data table (Click on the icon here n in order to copy the contents of the data table below into a spreadsheet.) Aggressive versus conservative

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Data table (Click on the icon here n in order to copy the contents of the data table below into a spreadsheet.) Aggressive versus conservative seasonal funding strategy Dynabase Tool has forecast its total funding requirements for the coming year as shown in the following table: a. Divide the firm's monthly funding requirement into (1) a permanent component and (2) a seasona/ component, and find the monthly average for each of these components. b. Describe the amount of long-term and short-term financing used to meet the total fundsyequirement under (1) an aggressive funding strategy and (2) a conservative funding strategy. Assume that under the aggressive strategy, long-term funds finance permanent needs and short-term funds are used to finance seasonal needs c. Assuming that short-term funding costs 5% annually and that the cost of long-term funding is 10% annually, use the averages found in part a to calculate the total cost of each of the strategies described in part b. Assume that the firm can earn 3% on any excess cash balances. d. Discuss the profitability-risk trade-offs associated with the aggressive strategy and those associated with the conservative strategy

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