Lear Inc. has $1,020,000 in current assets, $460,000 of which are considered permanent current assets. In...
Lear Inc. has $990,000 in current assets. $445,000 of which are considered permanent current assets. In addition, the firm has $790,000 invested in fixed assets. a. Lear wishes to finance all fixed assets and half of its permanent current assets with long-term financing costing 8 percent. The balance will be financed with short-term financing, which currently costs 6 percent. Lear's earnings before Interest and taxes are $390,000. Determine Lear's earnings after taxes under this financing plan. The tax rate is...
Lear, Inc. has $1,800,000 in current assets, $750,000 of which are considered permanent current assets. In addition, the firm has $1,000,000 invested in capital assets. a. Lear wishes to finance all capital assets and half of its permanent current assets with long-term financing costing 10 percent Short- term financing currently costs 5 percent. Lear's earnings before interest and taxes are $600,000. Determine Lear's earnings after taxes under this financing plan. The tax rate is 30 percent. Earnings after taxes $...
Lear, Inc. has $1,400,000 in current assets, $590,000 of which are considered permanent current assets. In addition, the firm has $840,000 invested in capital assets. a. Lear wishes to finance all capital assets and half of its permanent current assets with long-term financing costing 10 percent Short term financing currently costs 5 percent. Lear's earnings before interest and taxes are $440,000. Determine Lear's earnings after taxes under this financing plan. The tax rate is 30 percent. Earnings after taxes b....
Lear Inc. has $1,000,000 in current assets, $450,000 of which are considered permanent current assets. In addition, the firm has $800,000 invested in fixed assets. a. Lear wishes to finance all fixed assets and half of its permanent current assets with long-term financing costing 9 percent. The balance will be financed with short-term financing, which currently costs 7 percent. Lear’s earnings before interest and taxes are $400,000. Determine Lear’s earnings after taxes under this financing plan. The tax rate...
Lear ine. han $1,030,000 in ourrent asnels, $65,000 ef which ae considered pemanent cument assets In addtion, the frm hsn $830,000 invested in Sxnd assets a Lesr wishes to finsnce al fxed assets and haf of its permanent current assets with long-term financing costing 9 percent. The balance will be finsnced with shotHerm firancing,which curenily costs 6 percent Lear's earnings before iterest and๒es are S430,000. Determne Lear's eerrngs after tex" under ยาย franci ng plan. The tax rate is 40...
A. Colter Steel has $5,350,000 in assets. Temporary current assets $ 2,700,000 Permanent current assets 1,585,000 Fixed assets 1,065,000 Total assets $ 5,350,000 Short-term rates are 11 percent. Long-term rates are 16 percent. Earnings before interest and taxes are $1,130,000. The tax rate is 30 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? B. Colter Steel has $4,800,000 in assets....
Lear, Inc., has $880,000 in current assets, $390,000 of which are considered permanent current assets. In addition, the firm has $680,000 invested in fixedassets.(a)Lear wishes to finance all fixed assets and half of its permanent current assets with long-term financing costing 9 percent. The balance will be financed withshort-term financing, which currently costs 7 percent. Lear’s earnings before interest and taxes are $280,000. Determine Lear’s earnings after taxes under thisfinancing plan. The tax rate is 30 percent. (Omit the "$"...
Colter Steel has $5,200,000 in assets. Temporary current assets Permanent current assets Fixed assets Total assets $ 2,400,000 1,570,000 1 , 230, 000 $5,200,000 Short-term rates are 8 percent. Long-term rates are 13 percent. Earnings before interest and taxes are $1,100,000. The tax rate is 30 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? Earnings after taxes
Colter Steel has $4,600,000 in assets. Temporary current assets $ 1,200,000 Permanent current assets 1,510,000 Fixed assets1,890,000 Total assets$ 4,600,000 Short-term rates are 8 percent. Long-term rates are 13 percent. Earnings before interest and taxes are $980,000. The tax rate is 30 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? Earnings after taxes_________________ $
5. Colter Steel has $4,950,000 in assets. Temporary current assets $ 1,900,000 Permanent current assets 1,545,000 Fixed assets 1,505,000 Total assets $ 4,950,000 Short-term rates are 9 percent. Long-term rates are 14 percent. Earnings before interest and taxes are $1,050,000. 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?