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please help Elliot Steel manufactures steel parts for mining equipment. The company currently has the following assets: The company CFO determined that avallable short-term interest
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Elliot Steel manufactures steel parts for mining equipment. The company currently has the following assets: The company CFO determined that avallable short-term interest tates are 10 percent and long-term rates are 15 percent flong-ferm rates imply a retuin to any equity). Earnings before interest and taxes are $1,060,000 and the corporate 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 toxes be? Eamings after taxes ABC Company expects to sell 640 units in January, 390 units in February, and 1,700 units in March. January's beginning inventory is 980 units. Expected sales for the whole year are 15,600 units. The company has decided on a level monthly production schectule of 1,300 units (15,600 units /12 months =1,300 units per month). What is the expected end-of month inventory for January. February. and March Step by Step Solution
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