ter 6 homework Question 1 (of 4) value 10.00 points Problem 6-17 Lear, Inc. has $1,550,000 in current assets, $650,000 of which are considered permanent current assets. In addition, the firm has $900,000 invested in capital assets. a. Lear wishes to finance all capital assets and haif of its ermanent current assets with long-term financing costing 10 percent. Short-term financing currently costs 5 percent. Lear's earmings before interest and taxes are $500,000. Determine Lears eamings after taxes under this fnancing plan. The tax rate is 30 percent. Earnings after taxes As an alternative, Lear might wish to finance all capital assets and permanent current assets plus half of its temporary current assets with long-term financing. The same Earnings before interest and taxes will be $500,000. What will be Lear's eamings after taxes? The tax rate is 30 percent. interest rates apply as in part a. Earnings after taxes c. Not available in Connect References eBook&Resources Worksheet Learning Objective: 06-05 Explain esc : FI F2 F3 FA