Question: Guardian Inc. is trying to develop an asset-financing plan. The firm has $400,000 in temporary current assets and $300,000 in permanent current assets. Guardian also

 Guardian Inc. is trying to develop an asset-financing plan. The firm
has $400,000 in temporary current assets and $300,000 in permanent current assets.

Guardian Inc. is trying to develop an asset-financing plan. The firm has $400,000 in temporary current assets and $300,000 in permanent current assets. Guardian also has $500.000 in fixed assets. Assume a tax rate of 40 percent a. Construct two alternative financing plans for by long-term sources, and the other should be aggressive, with only 56.25 percent of assets financed current interest rate is 15 percent on long-term funds and 10 percent on short-term financing. Comput under each plan. Guardian. One of the plans should be conservative, with 75 percent of assets financed by long-term sources. The e the annual interest payments Annual Interest b. Given that Guardian's earnings before interest and taxes are $200,000, calculate earnings after taxes for each of your alternatives. Earning After Aggressive c. What would the annual interest and earnings after taxes for the conservative and aggressive strategies be if the short-term and long- term interest rates were reversed? points b. Given that Guardian's earnings before interest and taxes are $200,000, calculate earnings after taxes for each of your alternatives References c. What would the annual interest and earnings after taxes for the conservative and aggressive strategies be if the short-term and long term interest rates were reversed

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