Construct a conservative financing plan

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Question - Red Inc. is developing a plan to finance its asset base. The firm has $3,000,000 in current assets of which 20% are permanent and $10,000,000 in fixed assets. Long term rates are currently 8% while short term rates are at 6%. Red's tax rate is 30%. Construct a conservative financing plan with 80% of assets financed by long-term sources.

Reference no: EM132839170

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