Problem $6-12($Algo$)$ Matching asset mix and financing plans $[$LO$6-3]$

Colter Steel has $$5,300,000$ in assets.

Short$-$term rates are $10$ percent. Long$-$term rates are $15$ percent. Earnings before interest and taxes are $$1,120,000.$ The tax rate is $20$

percent.

If long$-$term financing is perfectly matched $($synchronized$)$ with long$-$term asset needs, and the same is true of short$-$term financing.

what will earnings after taxes be$?$

Earnings after taxesProblem $6-12($Algo$)$ Matching asset mix and financing plans $[$LO$6-3]$

Colter Steel has $$5,300,000$ in assets.

Short$-$term rates are $10$ percent. Long$-$term rates are $15$ percent. Earnings before interest and taxes are $$1,120,000.$ The tax rate is $20$

percent.

If long$-$term financing is perfectly matched $($synchronized$)$ with long$-$term asset needs, and the same is true of short$-$term financing.

what will earnings after taxes be$?$

Earnings after taxes