Colter Steel has $4,850,000 in assets. Temporary current assets $ 1,700,000 Permanent current assets 1,535,000 Fixed assets 1,615,000 Total assets

Colter Steel has $4,850,000 in assets. Temporary current assets $ 1,700,000 Permanent current assets 1,535,000 Fixed assets 1,615,000 Total assets $ 4,850,000 Assume the term structure of interest rates becomes inverted, with short-term rates going to 13 percent and long-term rates 3 percentage points lower than short-term rates. Earnings before interest and taxes are $1,030,000. 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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