12. Colter Steel has $4,200,000 in assets. Matching asset mix and financing plans (L06-3) Temporary current assets Permanent current assets Fixed assets Total assets $1,000,000 2,000,000 1,200,000 $4,200,000 Short-term rates are 8 percent. Long-term rates are 13 percent. Earnings before interest and taxes are $996,000. The tax rate is 40 percent If long-term financing is perfectly matched (synchronized) with long-term asset needs, and the same is true of short-term financing, what will earn- ings after taxes be? For a graphical example of perfectly matched plans, see Figure 6-5