Short-term financing-what is the firms interest payment

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Reference no: EM13883420

Goniff Steel has $24,000 in assets, consisting of $1,000,000 of temporary current assets, $2,000,000 of permanent current assets, and $1,200,000 of fixed assets. Short-term interest rates are 8% and long-term interest rates are 12%. If long-term financing is perfectly matched with the appropriate assets and the same is true of short-term financing, what is the firm's interest payment?

Reference no: EM13883420

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