What will earnings after taxes be

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Winfrey Diet Food Corp. has $4,500,000 in asset Short-term rates are 8 percent. Long-term rates are 13 percent. Earnings before interest and taxes are $960,000.

The tax rate is 40 percent.

Temporary current assets... $1,000,000

Permanent current assets.... 1,500,000

Fixed assets................ 2,000,000

Total assets............ $4,500,000

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: EM131115727

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