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Colter Steel has $5,400,000 in assets. Temporary current assets $ 2,800,000 Permanent current assets 1,590,000 Fixed assets 1,010,000 Total assets $ 5,400,000 Short-term rates are

Colter Steel has $5,400,000 in assets.

Temporary current assets $ 2,800,000
Permanent current assets 1,590,000
Fixed assets 1,010,000
Total assets $ 5,400,000

Short-term rates are 12 percent. Long-term rates are 17 percent. Earnings before interest and taxes are $1,140,000. The tax rate is 40 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?

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