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Colter Steel has $4,800,000 in assets. Temporary current assets $ 1,600,000 Permanent current assets 1,530,000 Fixed...

Colter Steel has $4,800,000 in assets.

Temporary current assets $ 1,600,000
Permanent current assets 1,530,000
Fixed assets 1,670,000
Total assets $ 4,800,000

Assume the term structure of interest rates becomes inverted, with short-term rates going to 12 percent and long-term rates 2 percentage points lower than short-term rates. Earnings before interest and taxes are $1,020,000. 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 be?

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