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

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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
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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