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

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

Short-term rates are 12 percent. Long-term rates are 17 percent. 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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