Lear Inc. has $$1,010,000$ in current assets, $$455,000$ of which

are considered permanent current assets. In addition, the firm has

$$810,000$ invested in fixed assets. a$.$ Lear wishes to finance all

fixed assets and half of its permanent current assets with

long$-$term financing costing $10$ percent. The balance will be

financed with short$-$term financing, which currently costs $4$

percent. Lear$$s earnings before interest and taxes are $$410,000.$

Determine Lear$$s earnings after taxes under this financing plan.

The tax rate is $40$ percent.earnings after taxes??b$.$ As an alternative, Lear might wish to finance all fixed

assets and permanent current assets plus half of its temporary

current assets with long$-$term financing and the balance with

short$-$term financing. The same interest rates apply as in part a$.$

Earnings before interest and taxes will be $$410,000.$ What will be

Lear$$s earnings after taxes? The tax rate is $40$ percent.earnings after taxes??