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Exercise 10-25A (Algo) Determining the effects of finencing alternatives on ratios LO 108 The company wishes to raise $33.000 in cash and as considering two

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Exercise 10-25A (Algo) Determining the effects of finencing alternatives on ratios LO 108 The company wishes to raise $33.000 in cash and as considering two financing options: Clyyton can sell 533.000 of bonds payable, or it can issue additional coomon stock for 533,000 . To help in the decision process, Clayton's management wants to determine the effects of esch alteinative on is curient ratio and debtio-assets ratio Required o-1. Compute the current ratio for Clayton's management. Note: Round your answers to 2 decimal places: 8.2. Corrpute the debt to assets ratio for Cinton's managensent. Note: Round your anwwers to 1 decimsi place. Required a-1. Compute the curtem rario for Claylon's management. Note: Round your answers 102 decimal plsces. a-2. Compirte the debt-to-assets tatio for Cubtoris marrapement. Note: Round your answers to 1 decimsl place. th. Assume that afier the funds are irvessed E.fot amounts 10514,500 . Aso assume the company pays 53.000 in dividends or 53.500 in merest depending oa wheh sotice of financieg is ueed. Dased oo a 40 percent kax fate, determine the amocant of the increase in ietained earnings that would restit under each financho ontion

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