Q$1-$ Guardian Inc. is trying to develop an asset$-$financing plan.

The firm has $$410,000$ in temporary current assets and $$310,000$ in

permanent current assets. Guardian also has $$510,000$ 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 $70$ percent

of assets financed by long$-$term sources, and the other should be

aggressive, with only $56\mathrm{.}25$ percent of assets financed by long$-$term

sources. The current interest rate is $16$ percent on long$-$term funds

and $8$ percent on short$-$term financing. Compute the annual interest

payments under each plan.b$.$ Given that Guardian$$s earnings before

interest and taxes are $$290,000,$ calculate earnings after taxes for

each of your alternatives.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?Q$2-$ Lear Inc. has $$870,000$ in current assets, $$385,000$ of which

are considered permanent current assets. In addition, the firm has

$$6$Guardian Incorporated is trying to develop an asset$-$financing plan. The firm has $$410,000$ in temporary current assets and $$310,000$ in permanent current assets. Guardian also has $$510,000$ in fixed assets. Assume a tax rate of $30$ percent.

Construct two alternative financing plans for Guardian. One of the plans should be conservative, with $70$ percent of assets financed by long$-$term sources, and the other should be aggressive, with only $56\mathrm{.}25$ percent of assets financed by long$-$term sources. The current interest rate is $16$ percent on long$-$term funds and $8$ percent on short$-$term financing. Compute the annual interest payments under each plan.

Given that Guardian$$s earnings before interest and taxes are $$290,000,$ calculate earnings after taxes for each of your alternatives.

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?