Business, 24.06.2019 18:40 lilybear1700

Lear inc. has $980,000 in current assets, $440,000 of which are considered permanent current assets. in addition, the firm has $780,000 invested in fixed assets. a. lear wishes to finance all fixed assets and half of its permanent current assets with long-term financing costing 10 percent. the balance will be financed with short-term financing, which currently costs 5 percent. lear’s earnings before interest and taxes are $380,000. determine lear’s earnings after taxes under this financing plan. the tax rate is 30 percent

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Lear inc. has $980,000 in current assets, $440,000 of which are considered permanent current assets....