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asap please Nighthawk Steel, a manufacturer of specialized tools, has $4,550,000 in assets. Short-term rates are 7 percent. Long-term rates are 12 percent. (Note that

asap please
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Nighthawk Steel, a manufacturer of specialized tools, has $4,550,000 in assets. Short-term rates are 7 percent. Long-term rates are 12 percent. (Note that long-term rates imply a return to any equity). Earnings before interest and taxes are $970,000. The tax rate is 20 percent If long-term financing is perfectly matched (hedged) with long-term asset needs, and the same is true of short-term financing, what will earnings after taxes be? For an example of perfectly hedged plans see figure 68 . Earnings after taxes $

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