B. As an alternative, Leah might wish to finance all assets and permanent current assets plus half of it's temporary current assets with long-term financing and the balance with short-term financing the same interest rates apply as in part eight earnings before interest and taxes will be $430,000 what will Lear Inc has $1,030,000 in current assets, $465,000 of which are considered permanent current assets. In addition, the firm has 830,000 invested in fixed assets.

A. Lear wishes to finance all fixed assets and half of its permanent current assets with long-term financing costing 9% the balance will be financed with short-term financing which currently cost 6% Lear's earnings before interest and taxes or $430,000 determine Leah's earnings after taxes and this financing plan the tax rate is 40 percent.