P$15-4$ Aggressive versus conservative seasonal funding strategy Dynabase Tool has forecast its

total funds requirements for the coming year as shown in the following table.

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 total funds

requirement under $(1)$ an aggressive funding strategy and $(2)$ a conservative 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 tradeoffs associated with the aggressive strategy and those

associated with the conservative strategy.I don't understand this. Please thoroughly explain. I$\text{'}$m trying to complete with paper and pencil. Please fully explain how I show calculate not understanding how.