Question 33 (6 points) Paloma Accounting has $970,000 in current assets, of which 20% are...
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Question 33 (6 points) Paloma Accounting has $970,000 in current assets, of which 20% are permanent, and $1,150,000 in capital assets. The current long-term rate is 8%, and the current short-term rate is 5%. Paloma has a tax rate is 30%. A) Construct two financing plans-one conservative, with 70% of assets financed by long-term sources, and the other aggressive, with only 35% of assets financed by long-term sources. B) Paloma's earnings before interest and taxes are $715,000, calculate net income under each alternative. C) Which plan would you recommend? Why? Excel Template Paragraph BIU cop 6 8 2 3 3 R. T Y U P I lo G H . J
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