Irish Air Services Has Determined Several Factors Relative to Its

question 256

Multiple Choice

Irish Air Services has determined several factors relative to its asset and financing mix. A. The firm earns 10 percent annually on its current assets.
B. The firm earns 20 percent annually on its fixed assets.
C. The firm pays 13 percent annually on current liabilities. D. The firm pays 17 percent annually on longterm funds.
E. The firm's monthly current, fixed and total asset requirements for the previous year are summarized in the table below:
$$\begin{array} { l c r r } \text { Month } & \begin{array} { c } \text { Current } \\\text { Assets }\end{array} & \begin{array} { c } \text { Fixed } \\\text { Assets }\end{array} & \begin{array} { c } \text { Total } \\\text { Assets }\end{array} \\\hline \text { January } & \$ 45,000 & \$ 100,000 & \$ 145,000 \\\text { February } & 40,000 & 100,000 & 140,000 \\\text { March } & 50,000 & 100,000 & 150,000 \\\text { April } & 55,000 & 100,000 & 155,000 \\\text { May } & 60,000 & 100,000 & 160,000 \\\text { June } & 75,000 & 100,000 & 175,000 \\\text { July } & 75,000 & 100,000 & 175,000 \\\text { August } & 75,000 & 100,000 & 175,000 \\\text { September } & 60,000 & 100,000 & 160,000 \\\text { October } & 55,000 & 100,000 & 155,000 \\\text { November } & 50,000 & 100,000 & 150,000 \\\text { December } & 50,000 & 100,000 & 150,000\end{array}$$
-The firm's annual financing costs of conservative financing strategy is__________

• A) $21,175
• B) $26,075
• C) $29,750
• D) $22,775

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Definitions:

Human Capital

The collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value for the individuals, their employers, or their community.

Ties

Connections or relationships between individuals or entities, which can be social, professional, or emotional in nature.

Clique Network

A subgroup within a larger network where members have closer, more frequent, and exclusive interactions, often impacting the flow of information and influence.

Boundary-spanning Network

A network that reaches across and connects diverse organizations or social groups to facilitate information flow and collaboration.