2. Lodi Equipment Company is investigating the use of various combinations of short-term and long-term debt to finance its assets. Assume that the company has decided to employ $20 million in current assets, along with $30 million in fixed assets, or $50 million in total assets. Stockholders' equity will be used to finance $35 million of its assets, with the remainder ( $15 million) being financed by shortterm debt (STD) and long-term debt (LTD). Lodi is considering implementing one of the following financing policies: a. Determine i) the current ratio and ii) the total interest expense for each financing policy. b. What is the profitability versus risk trade-off associated with these three working capital financing policies