Activity wz. In Real Life (50 pts) 1. The equity of Corona Merchandising amounts to 10.000.000. The total resources amounts to P8,000,000 is broken down as follows Temporary Current Assets 0 000 Permanent Current Assets 1 500.000 Fixed Assets 3,600,000 The interest rate on current short-term debt is 6% while that of the long- term debt is 1296. The applicable tax rate of the business is 30%. The earnings before interest and taxes amount to P1,800,000 Required: 1. Prepare the financing plan under the following approaches a. Aggressive financing policy where 40% of the total assets are financed by long-term debt b. Conservative financing policy where 85% of the total assets are financed by long-term debts 2. Compute the retum on equity under the two financing plans Answer: (you can use the back portion for the solving and answer)