Spleth's Clubs, Inc, has $10,000,000 in assets. If it goes with a low quidity plan for the assets, it can eam a return of 15 percent but with a high liquidity plan, the return will be 10 percent. If the firm goes with a short-term financing on the financing costs on the 510,000,000 will be 8 percent and with a long-term financing plan, the financing costs on the 510,000,000 will be 9 percent Compute the anticipated return after financing costs on the most aggressive asset- financing me Select one: O A $100.000 O B. $200,000 OC5700.000 O 0.5800,000 Scary choke 17 Dustin is the CFO of Dr's Golf Swing Improvements Inc. which requires $1,000,000 in financing over the next two years. D's can borrow long-term at 9 percent interest per year for two years. Alternatively, D's can borrow short-term and pay 7 percent interest in the first year. Then, Dj's projects paying 10 percent interest in the second year. Assuming Dj's pays off the accrued interest at the end of each year, which of the following statements is true? Select one: O A. DIS can expect to pay more under the long-term financing plan. O B. DIs will definitely end up paying less under the long-term financing plan. O COI's will probably pay more under the short-term financing plan O D. DJ's will probably pay the same under either financing plan -32 Average daily remittances are 55 million and extended disbursement float adds 3 days to the disbursement schedule, how much should the firm be willing to pay for a cash management system is the firm earns 10% on excess funds. Select one: O A 5500,000 OB. 51,500,000 OC. 51,000,000 O 0.50 39 Brooke is Treasurer of Henderson Birdie Machines Inc. Brooke would like to know what is the effect rate of interest if she can borrow $10,000 for 60 days at a cost of $200 interest Select one: O A 9.90% OB. 10.50% OC 11.50% D. 12.00% W.2020 V Week 5 m 2 Chapter 6-) 46 Hideki is the CFO of Matsuyama Inc. and is considering a loan. The loan is a discounted loan and also requires a compensating balance of 5%. Hideki is trying to calculate the effective annual rate of interest on this loan if he would borrow $300,000 for one year at 7.00% interest. What is the answer? Select one O A. 7.00% O B.737% O C. 7.53% O D. 7.96%