Problem $6-10($Algo$)$ Optimal policy mix $[$LO$6-5]$

Assume that Hogan Surgical Instruments Company has $$4,200,000$ in assets. If it goes with a low$-$liquidity plan for the assets, it can earn a return of $15$ percent, but with a high$-$liquidity plan, the return will be $11$ percent. If the firm goes with a short$-$term financing plan, the financing costs on the $$4,200,000$ will be $7$ percent, and with a long$-$term financing plan, the financing costs on the $$4,200,000$ will be $9$ percent.

a$.$ Compute the anticipated return after financing costs with the most aggressive asset$-$financing mix.

Anticipated return

b$.$ Compute the anticipated return after financing costs with the most conservative asset$-$financing mix.

Anticipated return

c$.$ Compute the anticipated return after financing costs with the two moderate approaches to the asset$-$financing mix.

$\backslash$table$[[,$Anticipated Return$],[$Low liquidity,$],[$High liquidity,$]]$