Nighthawk Steel, a manufacturer of specialized tools, has $5,300,000 in assets. Temporary current assets $2,600,000 Permanent current assets 1,580,000 Capital assets 1,120,000 Total assets $5,300,000 Short-term rates are 10 percent. Long-term rates are 15 percent. (Note that longterm rates imply a return to any equity). Earnings before interest and taxes are $1,120,000. The tax rate is 20 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 $