Problem:
Wilson Corp has financing needs for $385,000 in assets for the new cat treat company they started. The low liquidity return on assets is likely to be 16% and the high liquidity return is likely to be 9%. Their financing options are short-term for 4% and long-term for 7%. They pay 30% in tax.
Required:
Question: What is the NI projected for the conservative, aggressive and low liquidity hybrid plan?
Note: Provide support for your underlying principle.