Conservative financing plan-calculate earnings after taxes

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Nessie Corp. has $2,500,000 in current assets ($1,800,000 are permanent current assets, 700,000 are temporary current assets). The company also has $3,000,000 in fixed assets. They believe a conservative financing plan will benefit them in current economic conditions so they will use short-term financing at 7% to finance temporary current assets and they will use long-term financing at 9.5% to finance the rest. Construct a conservative financing plan. Calculate earnings after taxes. EBIT IS 3,300,000 AND TAXE RATE IS 40%

Reference no: EM131889987

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