Reference no: EM132315844

Question :

Colter Steel has $4, 650,000 in assets*

Temporary current assets    $1,3010,000

Permanent current assets     1,515,000

Fixed assets                       1, 835,000

Total assets                      $4,650,000

Short -term rates are 9 percent . Long-term rates are 14 percent . Earnings before interest and taxes are $9.90,000 . The tax rate is 40 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 DE?

Earnings after taxes