The following is a summarized balance sheet of Falcon Corporation at December 31, 2021. All amounts are in $000's. Current assets $ 1,000 Property, plant, and equipment 15,000 Total assets 16,000 Current liabilities $ 650 Long-term debt 9,500 Total liabilities 10,150 Shareholders' equity Common shares 4,000 Retained earnings 1,850 Total shareholders' equity 5,850 Total liabilities and equity $ 16,000 Falcon requires additional financing of $5,000,000 to finance an expansion of its business. The two choices are: Alternative 1: Issue a 20-year, $5,000,000 5% bond payable at face value. Alternative 2: Issue 250,000 common shares at $20 each. In Falcon's industry, a safe debt to total assets ratio is considered to be between 50% and 60%. Falcon's board of directors is risk adverse. Assume that the financing is made at the beginning of the year. Instructions a) Calculate the debt to total assets ratio under the two proposed financing methods. b) Make a recommendation to Falcon on the better financing alternative and explain your choice.