The following is a summarized balance sheet of Falcon Corporation at December 31, 2021. All amounts are in $000's. Current assets Property, plant, and equipment Total assets Current liabilities Long-term debt Total liabilities Shareholders' equity Common shares Retained earnings Total shareholders' equity Total liabilities and equity $ 1,000 15,000 $ 650 9,500 4,000 1,850 5,850 16,000 10,150 4 Time left 0:51:27 $ 16,000 Falcon requires additional financing of $5,000,000 to finance an expansion of its business. The two choices are: Falcon requires additional financing of $5,000,000 to finance an expansion of its business. The two choices are: Alternative Issue a 20-year, $5,000,000 5% bond payable at face value. 1: Alternative Issue 250,000 common shares at $20 each. 2: 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. Make a recommendation to Falcon on the better financing alternative and explain your choice. b)