Question
Weeknd Streaming Service has arranged short term financing at 55% and long term financing at 88%. The company plans to finance the long term assets
Weeknd Streaming Service has arranged short term financing at 55% and long term financing at 88%. The company plans to finance the long term assets and 9090% of its permanent current assets with long term debt and the rest of its permanent and temporary current assets with short term debt.
The following indicates it current mix of assets:
Current assets | $ 200,000200,000 |
Capital assets | 500,000500,000 |
Total assets | $ 700,000700,000 |
Of the current assets, $140,000140,000 would be considered permanent.
Annual earnings before interest and taxes are $530,000530,000 and the effective tax rate is 1818%.
Round to nearest whole number (e.g. 1,355)
What will short term interest costs be? Answer: $ Answer
What will long term interest costs be? Answer: $ Answer
What will earnings before taxes be? Answer: $ Answer
What will earnings after taxes be? Answer: $ Answer
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