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Colter Steel has $4,550,000 in assets. Temporary current assets Permanent current assets Fixed assets Total assets $1,100,000 1,505,000 1,945,000 $ 4,550,000 Short-term rates are 7
Colter Steel has $4,550,000 in assets. Temporary current assets Permanent current assets Fixed assets Total assets $1,100,000 1,505,000 1,945,000 $ 4,550,000 Short-term rates are 7 percent. Long-term rates are 12 percent. Earnings before interest and taxes are $970,000. The tax rate is 20 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 earnings after taxes be? Earnings after taxes
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