How do find what will earnings after taxes be

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Colter Steel has $5,450,000 in assets.

Temporary current assets $2,900,000

Permanent current assets .. 1,595,000

Fixed assets 955,000

Total assets $5,450,000

Short-term rates are 7 percent. Long-term rates are 12 percent. Earnings before interest and taxes are $1,150,000. The tax rate is 20 percent.

Problem 1: 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?

Reference no: EM132740103

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