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Lear, Inc. has $1,100,000 in current assets, $470,000 of which are considered permanent current assets. In addition, the firm has $720,000 invested in capital assets

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Lear, Inc. has $1,100,000 in current assets, $470,000 of which are considered permanent current assets. In addition, the firm has $720,000 invested in capital assets a. Lear wishes to finance all capital assets and half of its permanent current assets with long-term financing costing 10 percent. Short- term financing currently costs 5 percent. Lear's earnings before interest and taxes are $320,000. Determine Lear's earnings after taxes under this financing plan. The tax rate is 30 percent Earnings after taxes $ b. As an alternative, Leat might wish to finance all capital assets and permanent current assets plus half of its temporary current assets with long-term financing. The same interest rates apply as in part a. Earnings before interest and taxes will be $320,000. What will be Lear's earnings after taxes? The tax rate is 30 percent. Earnings after taxes $ c. Not available in Connect Lear, Inc. has $1,800,000 in current assets, $750,000 of which are considered permanent current assets. In addition, the firm has $1.000.000 invested in capital assets. o. Lear wishes to finance all capital assets and half of its permanent current assets with long term financing costing 10 percent. Short-term financing currently costs 5 percent. Lear's earnings before interest and taxes are $600,000. Determine Lear's earnings after taxes under this financing plan. The tax rate is 30 percent. Earnings after taxes $ b. As an alternative. Lear might wish to finance all capital assets and permanent current assets plus half of its temporary current assets with long-term financing. The same interest rates apply as in part a. Earnings before interest and taxes will be $600,000. What will be Lear's earnings after taxes? The tax rate is 30 percent. Earnings after taxes $ c. Not available in Connect

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