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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 low Bquidity plan

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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 low Bquidity plan for the assets, if can. earn a return of 15 percent, but with a high-liquidity plan, the return wil be 11 percent . If the firm goes with a shonterm financing plan, the financing costs on the $3,200,000 will be 7 percent, and with a long term financing ptan, the financing costs on the 53.200,000 will be 9 percent. a. Compute the anticipated return after financing costs with the most aggressive assetfinancing mo. b. Compute the anticipated return after financing costs with the most conservative asset-financing mix Compute the anticipated return after financing costs with the two moderate approaches to the asset-financing mix

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