Problem 6-14 Conservative versus aggressive financing (L06-5) Guardian Inc. is trying to develop an asset-financing plan. The firm has $380,000 in temporary current assets and $280,000 in permanent current assets. Guardian also has $480.000 in fixed assets. Assume a tax rate of 30 percent a. Construct two alternative financing plans for Guardian. One of the plans should be conservative, with 80 percent of assets financed by long-term sources, and the other should be aggressive, with only 56.25 percent of assets financed by long-term sources. The current interest rate is 12 percent on long-term funds and 6 percent on short-term financing. Compute the annual interest payments under each plan Annual Interest Conservative Aggressive b. Given that Guardian's earnings before interest and taxes are $260,000, calculate earnings after taxes for each of your alternatives. Earning After Taxes Conservative Aggressive