Problem 6-15 (Algo) Alternative financing plans [LO6-5] Lear Incorporated has $1,000,000 in current assets, $450,000 of wiich are considered permanent current assets in adthisari, the firm has 5800,000 invested in foxed assets. a. Lear wishes to finance all foxed assets and half of iss permanent current assets with long-tem financing costing 9 percent. Theie balance will be financed with short-term financing. Which currenty cots 7 percent. Lear's earnings before interest and taess are 5400000 , Determine Lear's eamings atter taxes under this tinancing plan. The taxrate is 30 percent b. As an alteinetive, Leat might wish to thrance all fived assets and permenent curent ossets plus hat of ts temporary curreit assels With longtem finpncing and the balance With sholt term financing. The same interest rates apply as in part at. Eaminas befare interest and taxes wil be 5400,000 . What wa be Lear s earnings after toxes? The tax tate is 30 percent Problem 6-15 (Algo) Alternative financing plans [LO6-5] Lear Incorporated has $1,000,000 in current assets, $450,000 of which are considered permanent current issets. in adatalion, the firmi has $800,000 invested in fixed assets. a. Lear wishes to finance all fixed assets and half of its permanent current assets with long term financing costing 9 percent. The balance will be financed with short-term financing. which curcently costs 7 peicent. Lear's earnings before interest and taxes are $400,000. Determine Lear's earnings after taxes under this financing plan The tax rate is 30 percent. b. As an altemative, Leat might wish to finance all fived assets and permanent current assets plis half of its temporary cutfent assets with long-term financing and the balance with short-term financing The same intetest rates apply as in pait a Eamings betare interest and taxes will be 5400,000 What will be Lear's eamings after taxes? The tax rate is 30 percent