Problem 6-14 Conservative versus aggressive financing (L06-5] Guardian Inc. is trying to develop an asset-financing plan. The firm has $380,000 in temporary current assets and $280,000 in permanent current assets. Guardian also has $480,000 in fixed assets. Assume a tax rate of 30 percent. a. Construct two alternative financing plans for Guardian. One of the plans should be conservative, with 80 percent of assets financed by long-term sources, and the other should be aggressive, with only 56.25 percent of assets financed by long-term sources. The current interest rate is 12 percent on long-term funds and 6 percent on short-term financing. Compute the annual interest payments under each plan. c. What would the annual interest and earnings after taxes for the conservative and aggressive strategies be if the short-term and long- term interest rates were reversed? Conservative Aggressive Total interest Earnings after taxes