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4. (5 points) Big Sky Corp. has $900,000 in current assets, $400,000 of which are considered permanent current assets. In addition, the firm has $700,000

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4. (5 points) Big Sky Corp. has $900,000 in current assets, $400,000 of which are considered permanent current assets. In addition, the firm has $700,000 invested in fixed assets. Big Sky wishes to finance all fixed assets and half of its permanent current assets with long-term financing costing 8 percent. The balance will be financed with short-term financing which currently costs 5 percent. Big Sky's earnings before interest and taxes are $340,000. Big Sky has an effective tax rate of 30 percent. Determine Big Sky's earnings after taxes under this financing plan

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