Essay: Aggressive Policy of Financing

Sample Essay

The aggressive policy of financing entails that temporary requirements of the company are funded by short term funds and permanent requirements are funded by long term financing. The rate of short term financing for Wave Satellites is 11 percent whereas the rate of long term financing is 13 percent. The annual financing costs using an aggressive policy for Wave Satellite can be calculated using the following formula.

Total Cost = (Average permanent requirement X long term rate) + (Average temporary requirement X short term rate)

Total cost = (525,000 X 13%) + (80,000 X 11%)

Total cost = 68,250 + 8,800

Total Financing cost = $77,050

Please go to the order form to order essays, research papers, term papers, thesis, dissertation, case study, assignments on this essay topic.