Dynabase Tool has forecast its total funding requirements for the coming year as shown in the following$$ table: January$2,000,000$July$12,000,000$

February$2,000,000$August$16,000,000$

March$2,000,000$September$10,000,000$

April$4,000,000$October$7,000,000$

May$5,000,000$November$5,000,000$

June$8,000,000$December$4,000,000$

a$.$Divide the$$ firm's monthly funding requirement into$(1)$ a permanent component and$(2)$ a seasonal$$ component, and find the monthly average for each of these components.

Part $2$

The monthly average of the$$ firm's permanent funding requirement is $$$

$$

enter your response here. $($Round to the nearest$$ dollar.$)$

Part $3$

The monthly average of the$$ firm's seasonal funding requirement is $$$

$$

enter your response here. $($Round to the nearest$$ dollar.$)$

Part $4$

b$.$Describe the amount of$$ long$-$term and$$ short$-$term financing used to meet the total funds requirement under$(1)$ an aggressive funding strategy and$(2)$ a conservative funding strategy.$$

Part $5$

If Dynabase employs an aggressive funding$$ strategy, the amount it will fund with$$ short$-$term debt is $$$

$$

enter your response here. $($Round to the nearest$$ dollar.$)$

Part $6$

If Dynabase employs an aggressive funding$$ strategy, the amount it will fund with$$ long$-$term debt is $$$

$$

enter your response here. $($Round to the nearest$$ dollar.$)$

Part $7$

If Dynabase employs a conservative funding$$ strategy, the amount it will fund with$$ long$-$term debt is $$$

$$

enter your response here. $($Round to the nearest$$ dollar.$)$

Part $8$

c$.$Assuming that$$ short$-$term funding costs $5\%$ annually and that the cost of$$ long$-$term funds 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.

Part $9$

The total cost under the aggressive strategy is $$$

$$

enter your response here.$($Round to the nearest$$ dollar.$)$

Part $10$

The total cost under the conservative strategy is $$$

$$

enter your response here. $($Round to the nearest$$ dollar.$)$

Part $11$

d$.$In light of the$$ profitability$-$risk tradeoffs associated with the aggressive strategy and those associated with the conservative$$ strategy, which of the following statements is$$ false?$($Select the best answer$$ below.$)$

In this$$ case, the aggressive strategy is more attractive because of the large difference between$$ short$-$term vs$.$ long$-$term rates.

In this$$ case, the conservative strategy is more attractive because it costs less.

In$$ general, a conservative strategy will cost the firm more because it requires the firm to pay interest on unneeded funds.

In$$ general, an aggressive strategy entails more risk because of interest rate swings and possible difficulties obtaining financing quickly.

The monthly average of the firm's permanent funding requirement is $$($Round to the nearest dollar.$)$The monthly average of the firm's seasonal funding requirement is $$($Round to the nearest dollar.$)$If Dynabase employs an aggressive funding strategy, the amount it will fund with short$-$term debt is $$($Round to the nearest dollar.$)$If Dynabase employs an aggressive funding strategy, the amount it will fund with long$-$term debt is $$($Round to the nearest dollar.$)$If Dynabase employs a conservative funding strategy, the amount it will fund with long$-$term debt is $$($Round to the nearest dollar.$)$The total cost under the aggressive strategy is $$($Round to the nearest dollar.$)$The total cost under the conservative strategy is $$($Round to the nearest dollar.$))$