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Colter Steel has $5,150,000 in assets. Temporary Current Assets: $2,300,000 Permanent Current Assets: 1,565,000 Fixed Assets:...

Colter Steel has $5,150,000 in assets.

Temporary Current Assets: $2,300,000

Permanent Current Assets: 1,565,000

Fixed Assets: 1,285,000

Total Assets: 5,150,000

Short-term rates are 7 percent. Long-term rates are 12 percent. Earnings before interest and taxes are $1,090,000. The tax rate is 20 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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