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Times Inc. is trying to develop an asset-financing plan. The firm has $410,000 in temporary current assets and $310,000 in permanent current assets. Times also

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Times Inc. is trying to develop an asset-financing plan. The firm has $410,000 in temporary current assets and $310,000 in permanent current assets. Times also has $510,000 in fixed assets. Assume a tax rate of 30 percent. (Do not round intermediate calculations. Round your answers to the nearest whole number.) a. Construct two alternative financing plans for Times. One of the plans should be conservative, with 70 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 16 percent on long-term funds and 8 percent on short-term financing. Compute the annual interest payments under each plan. Conservative Aggressive Annual Interest $ $ b. Given that Times' earnings before interest and taxes are $290,000, calculate earnings after taxes for each of your alternatives. Earnings After Taxes $ Conservative Aggressive $ 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 $ Total interest Earnings after taxes Aggressive $ $

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