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Colter Steel has $5,050,000 in assets. Temporary current assets Permanent current assets Fixed assets Total assets $ 2,100,000 1,555,000 1,395,000 $ 5,050,000 Short-term rates are
Colter Steel has $5,050,000 in assets. Temporary current assets Permanent current assets Fixed assets Total assets $ 2,100,000 1,555,000 1,395,000 $ 5,050,000 Short-term rates are 11 percent. Long-term rates are 16 percent. Earnings before interest and taxes are $1,070,000. The tax rate is 30 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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