Nighthawk Steel, a manufacturer of specialized tools, has $4,700,000 in assets.Temporary current assetsPermanent current assetsCapital assets$1,400,0001,520,0001,780,000Total assets$4,700,000Short-term rates are 10 percent. Long-term rates are 15 percent. (Note that long-term rates imply a return to any equity). Earningsbefore interest and taxes are $1,000,000. The tax rate is 20 percent.If long-term financing is perfectly matched (hedged) with long-term asset needs, and the same is true of short-term financing, what willearnings after taxes be? For an example of perfectly hedged plans, see Figure 6-8.Earnings after taxes

The Earnings after Taxes is a measure of net profitability for the company. The higher the earnings…

Answered: Nighthawk Steel, a manufacturer of…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 5P

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Nighthawk Steel, a manufacturer of specialized tools, has $4,950,000 in assets. Temporary current assets Permanent current assets Capital assets Total assets $1,900,000 1,545,000 1,505,000 $4,950,000 Short-term rates are 9 percent. Long-term rates are 14 percent. (Note that long-term rates imply a return to any equity). Earnings before interest and taxes are $1,050,000. The tax rate is 40 percent. If long-term financing is perfectly matched (hedged) with long-term asset needs, and the same is true of short-term financing, what will earnings after taxes bé? For an example of perfectly hedged plans, see Figure 6-8. Earnings after taxes
Nighthawk Steel, a manufacturer of specialized tools, has $4,200,000 in assets. Temporary current assets Permanent current assets Capital assets Total assets $1,000,000 2,000,000 1,200,000 $4,200,000 Short-term rates are 4 percent. Long-term rates are 6.5 percent. (Note that long-term rates imply a return to any equity). Earnings before interest and taxes are $860,000. The tax rate is 25 percent. Assume the term structure of interest rates becomes inverted, with short-term rates going to 9 percent and long-term rates 4.5 percentage points lower than short-term rates If long-term financing is perfectly matched (hedged) with long-term asset needs, and the same is true of short-term financing, what will earnings be after taxes? For an example of perfectly hedged planssee Figure 6-8. Earning after taxes $ 459,000.00 O
Nighthawk Steel, a manufacturer of specialized tools, has $5,220,000 in assets. Temporary current assets Permanent current assets Capital assets Total assets $1,240,000 1,740,000 2,240,000 $5,220,000 Short-term rates are 4 percent. Long-term rates are 6.5 percent. (Note that long-term rates imply a return to any equity). Ear before interest and taxes are $1,080,000. The tax rate is 25 percent. Assume the term structure of interest rates becomes imm with short-term rates going to 9 percent and long-term rates 4.5 percentage points lower than short-term rates. If long-term financing is perfectly matched (hedged) with long-term asset needs, and the same is true of short-term financing, earnings be after taxes? Eor an example of perfectly hedged plans see Figure 6-8. Earning after taxes $
S Nighthawk Steel, a manufacturer of specialized tools, has $4,950,000 in assets. Temporary current assets Permanent current assets Capital assets Total assets $1,900,000 1,545,000 1,505,000 $4,950,000 Short-term rates are 9 percent. Long-term rates are 14 percent. (Note that long-term rates imply a return to any equity). Earnings before interest and taxes are $1,050,000. The tax rate is 40 percent. If long-term financing is perfectly matched (hedged) with long-term asset needs, and the same is true of short-term financing, what will earnings after taxes be? Eor an example of perfectly hedged plans. see Figure 6-8. Earnings after taxes
Nighthawk Steel, a manufacturer of specialized tools, has $5,220,000 in assets. Temporary current assets Permanent current assets Capital assets Total assets $1,240,000 1,740,000 2,240,000 $5,220,000 Short-term rates are 4 percent. Long-term rates are 6.5 percent. (Note that long-term rates imply a return to any equity). Ear before interest and taxes are $1,080,000. The tax rate is 25 percent. Assume the term structure of interest rates becomes im with short-term rates going to 9 percent and long-term rates 4.5 percentage points lower than short-term rates. If long-term financing is perfectly matched (hedged) with long-term asset needs, and the same is true of short-term financing earnings be after taxes? For an example of perfectly hedged plans, see Figure 6-8. Earning after taxes $
Acer Systems, a manufacturer of gaming consoles, has $5,520,000 in assets. Temporary current assets Permanent current assets Capital assets Total assets $1,340,000 1,840,000 2,340,000 $5,520,000 Short-term rates are 5 percent. Long-term rates are 7.5 percent. (Note that long-term rates imply a return Earnings before interest and taxes are $1,130,000. The tax rate is 25 percent. Assume the term structure a becomes inverted, with short-term rates going to 10 percent and long-term rates 5 percentage points lowe rates. If long-term financing is perfectly matched (hedged) with long-term asset needs, and the same is true of sh what will earnings be after taxes? For an example of perfectly hedged plans, see Figure 6-8. Earning after taxes $
Colter Steel has $4,550,000 in assets. Temporary current assets $ 1,100,000 Permanent current assets 1,505,000 Fixed assets 1,945,000 Total assets $ 4,550,000 Assume the term structure of interest rates becomes inverted, with short-term rates going to 13 percent and long-term rates 2 percentage points lower than short-term rates. Earnings before interest and taxes are $970,000. 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?
Colter Steel has $5,250,000 in assets. Temporary current assets. Permanent current assets Fixed assets Total assets $ 2,500,000 1,575,000. 1,175,000 $ 5,250,000 Assume short-term interest rates are 10 percent and long-term rates are 4 percentage points lower than short-term rates. Earnings before interest and taxes are $1,110,000. The tax rate is 40 percent. If long-term financing is perfectly matched (synchronized) with long-term asset needs, and the same is true of short-term financing. what will earnings after taxes be? Earnings after taxes
1. Given the most recent financial statements for FY2023. Sales for FY2024 are expected to grow by 10 percent. The following assumption must be held in the pro forma financial statements. The tax rate (percentage), the interest expense ($ amount), and the dividend payout ratio (percentage) will remain constant. COGS, SGA, Depreciation, all current asset accounts, Net PPE, intangibles, other assets, and accounts payable increase spontaneously with sales. Calculate the pro forma value for total assets for FY24 if the firm operates at full capacity and no new debt or equity is issued. (Enter percentages as decimals and round to 4 decimals) 2. Given the most recent financial statements for FY2023. Sales for FY2024 are expected to grow by 10 percent. The following assumption must be held in the pro forma financial statements. The tax rate (percentage), the interest expense ($ amount), and the dividend payout ratio (percentage) will remain constant. COGS, SGA, Depreciation, all…
Sherlock Homes, a manufacturer of low-cost mobile housing, has $5,150,000 in assets. Temporary current assets Permanent current assets $1,130, 000 1,760, 000 2,260, 000 Capital assets Total assets $5,150, 000 Short-term rates are 14 percent. Long-term rates are 10 percent (Note that long-term rates imply a return to any equity). Earnings before interest and taxes are $1,090,000. The tax rate is 40 percent. Assume the term structure of interest rates becomes inverted, with short-term rates going to 14 percent and long-term rates 4 percentage points lower than short-term rates. If long-term financing is perfectly matched (hedged) with long-term asset needs, and the same is true of short-term financing, what will earnings be after taxes? Eor an example of perfectly hedged plans, see Figure 6-8 Earning after taxes $ 411240 O
Colter Steel has $4,200,000 in assets. The temporary current assets are in place for nine months and reduce to zero for three months. Temporary current assets Permanent current assets Capital assets Total assets $1,000,000 2,000,000 1,200,000 $4,200,000 Short-term rates are 8 percent. Long-term rates are 13 percent. (Note that long-term rates imply a return to any equity). Earnings before interest and taxes are $996,000. 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? For an example of perfectly hedged plans, see Figure 6-8 Earning after taxes Chec
Crystal Oil has $9 million in accounts payable, $1.8 in saleries and taxes payable, and $10.4 in other current liabilities. If Crystal Oil had a cost of sales of $54 million and selling, general, and admisitrative expenses of $18 million, what is the length of its payables deferal period? *show work* A) 10.47 days B) 73.02 days C) 54.75 days D) 45.63

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