Lear, Inc., has $800,000 in current assets, $350,000 of which are considered permanent current assets. In addition, the firm has $600,000 invested in...

What are some of the risks and cost considerations associated with each of these alternative financing strategies?

Lear, Inc.a.Current assets – permanent current assets = temporary currentassets$800,000 –$350,000=$450,000Short-term interest expense = 5% [$450,000 + ½ ($350,000)]= 5% ($625,000)=...