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Help Nighthawk Steel, a manufacturer of specialized tools, has $4.200,000 in assets Temorary current Permanent tots Capital assets $1,000.00 2.000.000 1.200.000 Total assets 54,200,00 Short-term

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Help Nighthawk Steel, a manufacturer of specialized tools, has $4.200,000 in assets Temorary current Permanent tots Capital assets $1,000.00 2.000.000 1.200.000 Total assets 54,200,00 Short-term rates are 4 percent long term rates are 65 percent. (Note that long-term rates imply a return to any equnyi Earnings before interest and taxes are $860,000. The tax rate is 25 percent. Assume the term structure of interest rates becomes wwerted, with short term rates going to 9 percent and long-term rates 45 percentage points lower than short term rates Tong term financing perfectly matched hedged with long-term asset needs, and the same is true of shon terminancing wat be attesame operfectly hedged as see gute $ POW 1 of 2 Next >

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