4. (Debt-maturity mix) A company has $400 million of assets of which $250 are current assets. It forecasts a basic earning power ratio of 15% and pays income taxes at a 21% rate. Currently the yield curve is nor- mal; bank notes carry a 5% interest rate, and the com- pany can issue long-term bonds at 10%. The company has set a target debt ratio of 50%. For each of the fol- lowing debt maturity mixes: (1) construct the com- pany's balance sheet, (2) construct the financial half of its income statement, and (3) evaluate its risk and re- turn using the return on equity and current ratios. a. 20% of the debt is current, 80% long-term b. 40% of the debt is current, 60% long-term C. 60% of the debt is current, 40% long-term d. 80% of the debt is current, 20% long-term