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O Nighthawk Steel, a manufacturer of specialized tools, has $5,050,000 in assets. Temporary current assets $2,100,000 Permanent current assets 1,555,000 Capital assets 1,395,000 Total assets $5,050,000 Short-term rates are 11 percent. Long-term rates are 16 percent. (Note that long-term rates imply a return to any equity). Earnings before interest and taxes are $1,070,000. The tax rate is 30 percent. If long-term Financing is perfectly matched (hedged) with long-term asset needs, and the same s true of short-term financing, what will earnings after taxes be? For an example

O Nighthawk Steel, a manufacturer of specialized tools, has $5,050,000 in assets. Temporary current assets $2,100,000 Permanent current assets 1,555,000 Capital assets 1,395,000 Total assets $5,050,000 Short-term rates are 11 percent. Long-term rates are 16 percent. (Note that long-term rates imply a return to any equity). Earnings before interest and taxes are $1,070,000. The tax rate is 30 percent. If long-term Financing is perfectly matched (hedged) with long-term asset needs, and the same s true of short-term financing, what will earnings after taxes be? For an example

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Nighthawk Steel, a manufacturer of specialized tools, has $5,050,000 in assets. Temporary current assets $2,100,000 Permanent current assets 1,555,000 Capital assets 1,395,000 Total assets $5,050,000 Short-term rates are 11 percent. Long-term rates are 16 percent. (Note that long-term rates imply a return to any equity). Earnings before interest and taxes are $1,070,000. The tax rate is 30 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? For an example о
Transcribed Image Text:Nighthawk Steel, a manufacturer of specialized tools, has $5,050,000 in assets. Temporary current assets $2,100,000 Permanent current assets 1,555,000 Capital assets 1,395,000 Total assets $5,050,000 Short-term rates are 11 percent. Long-term rates are 16 percent. (Note that long-term rates imply a return to any equity). Earnings before interest and taxes are $1,070,000. The tax rate is 30 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? For an example о
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