Topic: Alternative Financing Plans

Questions$)$ Pulaski Inc. is trying to develop an asset financing plan.$$ Assume a $40\%$ tax rate for the firm.$$ The firm has the following assets:

Temporary current assets

$$400,000$

Permanent current assets

$$300,000$

Fixed assets

$$500,000$

a$.$Construct two alternativ financing plans for the firm.$$ One of the plans should be conservative, with $75$ percent of assets financed by long$-$term sources, and the other should be aggressive, with only $56\mathrm{.}25$ percent of assets financed on long$-$term funds and $10\%$ on short$-$term financing.$$