Colter Steel has $4,700,000 in assets.

Temporary current assets	$	1,400,000
Permanent current assets		1,520,000
Fixed assets		1,780,000
Total assets	$	4,700,000

Assume the term structure of interest rates becomes inverted, with short-term rates going to 11 percent and long-term rates 5 percentage points lower than short-term rates. Earnings before interest and taxes are $1,000,000. 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

$