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McKinsee, Inc. is developing a plan to finance its asset base. The firm has $5,000,000 in current assets, of which 20% are permanent, and $12,000,000
McKinsee, Inc. is developing a plan to finance its asset base. The firm has $5,000,000 in current assets, of which 20% are permanent, and $12,000,000 in fixed assets. Long-term interest rates are 9.50%, while short-term interest rates are 7.00%. McKinsee's earnings before interest and taxes are $6,000,000 and its tax rate is 30%. Using the maturity-matching principle, what is McKinsee's net income?
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