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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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