Question: Now consider the junk bond financing alternative.a . Construct pro forma income statements for 1 9 9 3 for the two financing alternatives.b . What

Now consider the junk bond financing alternative.a. Construct pro forma income statements for 1993 for the two financing alternatives.b. What are the times-interest-earned, fixed charge coverage, and cash flow coverage ratiosunder each alternative? 8. What should Rodriguez and Fultons final decision be? Fully support your answer. Are thereany other financing alternatives that should be considered?

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