Erins BUZZY Bees. has the following asset structure:	Temporary current assets	$500,000
	Permanent current assets	$700,000
	Capital Assets	$900,000

Erin has $300,000 in shareholders equity. The long-term interest rate is 5% and the short-term rate is 2%. Erin is trying to decide on a financing plan.

For all of your answers, please round to the dollar and do not write the comma between thousands and hundreds.

Under Plan A, permanent current assets and capital assets will be financed by long-term sources. The balance of debt will be financed by short-term sources and equity. Calculate the annual interest expense on long-term debt Answer and the annual interest expense on short-term debt Answer

Erin wants to try and lower her financing costs. Under Plan B, all capital assets, and only half of its permanent current assets will be funded with long term sources. The balance of debt will be financed by short-term sources and equity. Calculate the annual interest expense on long-term debt Answer and the annual interest expense on short-term debt. Answer

In the meeting with the bank , the following characteristics were used Lower interest rate, Rate and refinance risk and More aggressive... what were they describing:

Answer --> ST LoansBond FinancingLT LoansEquity