Exercise 10-25A (Algo) Determining the effects of financing alternatives on ratios LO 10-8 The company wishes to ralse $49,000 in cash and is considering two financing options. Clayton can sell $49,000 of bonds payable, or it can issue additional common stock for $49,000. To help in the decision process. Clayton's management wants to determine the effects of each alternative on its curtent ratio and debt-to-assets ratio. Required a-1. Compute the current rotio for Clayton's management a-2. Compute the debt-to-ossets ratio for Cloynon's management. b. Assume that after the funds are invested, EBiT omounts to $19.400. Also assume the company pays $4,900 in dividends or $4.900 in interest depending on which source of finatcing is used. Bosed on o 40 percent tox rote, determine the amount of the increase in retained eamings thet would result under each financing option Complete this question by entering vour answers in the tabs below. Compute the current iatio for Carton's maragenent, (found your answeri to z deomal plecas)