Colter Steel has $5,150,000 in assets. Temporary current assets Permanent current assets Fixed assets Total assets $ 2,300,000 1,565,000 1,285,000 $ 5,150,000 Short-term rates are 7 percent. Long-term rates are 12 percent. Earnings before interest and taxes are $1,090,000. 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
Colter Steel has $5,150,000 in assets. Temporary current assets Permanent current assets Fixed assets Total assets $ 2,300,000 1,565,000 1,285,000 $ 5,150,000 Short-term rates are 7 percent. Long-term rates are 12 percent. Earnings before interest and taxes are $1,090,000. 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
Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
Problem 5P
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help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
![Colter Steel has $5,150,000 in assets.
Temporary current assets
Permanent current assets
Fixed assets
Total assets
$ 2,300,000
1,565,000
1,285,000
$ 5,150,000
Short-term rates are 7 percent. Long-term rates are 12 percent. Earnings before interest and taxes are $1,090,000. 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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb19d8908-29e0-445c-8c23-6f09f92fce90%2F50ec6d22-7a43-49d7-a335-b7e35082c093%2Fjf32c9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Colter Steel has $5,150,000 in assets.
Temporary current assets
Permanent current assets
Fixed assets
Total assets
$ 2,300,000
1,565,000
1,285,000
$ 5,150,000
Short-term rates are 7 percent. Long-term rates are 12 percent. Earnings before interest and taxes are $1,090,000. 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
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