Aggressive versus conservative seasonal funding strategy Dynabase Tool has fore- cast its total funds requirements for the coming year as shown in the following table. P14-4 Month Amount Month Amount $2,000,000 2,000,000 2,000,000 4,000,000 6,000,000 9,000,000 July August September October November December $12,000,000 anuary February March 14,000,000 9,000,000 5,000,000 4,000,000 3,000,000 ri June a. Divide the firm's monthly funds requirement into (1) a permanent component and (2) a seasonal component, and find the monthly average for each of these components. b. Describe the amount of long-term and short-term financing used to meet the to tal funds requirement under (1) an aggressive funding strategy and (2) a conser vative funding strategy. Assume that, under the aggressive strategy, long-term funds finance permanent needs and short-term funds are used to finance seasonal needs c. Assuming that short-term funds cost 5% annually and that the cost of long-term funds is 10% annually, use the averages found in part a to calculate the total cost of each of the strategies described in part b. Assume that the firm can earn 3% on any excess cash balances d. Discuss the profitability-risk trade-offs associated with the aggressive strategy and those associated with the conservative strategy