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Problem 6-10 (Algo) Optimal policy mix [LO6-5] Assume that Hogan Surgical Instruments Company has $3,200,000 in assets. If it goes with a fow-tiquidity plan for

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Problem 6-10 (Algo) Optimal policy mix [LO6-5] Assume that Hogan Surgical Instruments Company has $3,200,000 in assets. If it goes with a fow-tiquidity plan for the assets, it cari earn a return of 15 percent, but with a high-liquidity plan, the return will be 11 percent. If the firm goes with a short-term financing plath the financing costs on the $3,200,000 will be 7 percent, and with a long-term financing plan, the financing costs an the $3.200,000 will be 9 percent. o. Compute the anticipated return after financing costs with the most aggressive asset-financing mix b. Compute the anticipated refurn after financing costs with the most conservative asset-financhig max E. Compute the anticipated retum after financing costs with the two moderate approaches to the asset-financipg mix

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