Help Save Sherlock Homes, a manufacturer of low cost mobile housing, has $5,050,000 in assets. Temporary current assets Permanent current assets Capital assets $2,100,000 1,555,000 1,395,000 Total assets $5,850,000 Short-term rates are 11 percent. Long-term rates are 16 percent. (Note that long-term rates imply a return to any equity). Earnings before Interest and taxes are $1.070,000. The tax rate is 30 percent If long-term financing is perfectly matched (hedged) with it asset needs, and the same is true of short-term financing what will earnings after taxes be? For an example of perfectly heslo ee Figure 6-8 Earnings after taxes $