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Rose Chocolates Corporation has forecasted its total funds requirements for the coming year as shown in the table below: Given that short-term funds cost 4%
Rose Chocolates Corporation has forecasted its total funds requirements for the coming year as shown in the table below: Given that short-term funds cost 4% annually and that long-term funds cost 8% annually, calculate the total cost of each of the following strategies. Copy the above table and show all necessary workings. Note: No marks will be awarded if there are no workings. (a) An aggressive funding strategy. (5 marks) (b) A conservative funding strategy. (2 marks) (c) Given the firm's management is currently focusing on reducing risk, should the firm adopt the Aggressive financing strategy or Conservative financing strategy? Provide justification for your answer. Rose Chocolates Corporation has forecasted its total funds requirements for the coming year as shown in the table below: Given that short-term funds cost 4% annually and that long-term funds cost 8% annually, calculate the total cost of each of the following strategies. Copy the above table and show all necessary workings. Note: No marks will be awarded if there are no workings. (a) An aggressive funding strategy. (5 marks) (b) A conservative funding strategy. (2 marks) (c) Given the firm's management is currently focusing on reducing risk, should the firm adopt the Aggressive financing strategy or Conservative financing strategy? Provide justification for your
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