Assume that Atlas Sporting Goods Inc. has $800,000 in assets. If it goes with a low liquidity plan for the assets, it can earn a return of 15 percent, but with a high liquidity plan, the return will be 12 percent. If the firm goes with a short-term financing plan, the financing costs on the $800,000 will be 8 percent; with a long term financing plan, the financing costs on the $800,000 will be 10 percent.
a. Compute the anticipated return after financing costs on the most aggressive asset-financing mix.
b. Compute the anticipated return after financing costs on the most conservative asset-financing mix.

c. Compute the anticipated return after financing costs on the two moderate approaches to the asset-financing mix.
d. Would you necessarily accept the plan with the highest return after financing costs? Briefly explain.