Nighthawk Steel, a manufacturer of specialized tools, has $4,600,000 in assets. Temporary current assets Permanent current assets Capital assets Total assets $1,200,000 1,510,000 1,890,000 $4,600,000 Short-term rates are 8 percent. Long-term rates are 13 percent. (Note that long-term rates imply a return to any equity). Earnings before interest and taxes are $980,000. The tax rate is 30 percent. If long-term financing is perfectly matched (hedged) with long-term asset needs, and the same is true of short-term financing, what will earnings after taxes be? For an example of perfectly hedged plans, see Figure 6-8. Earnings after taxes $