Question: b) is wrong can somone solve it Problem 6-15 Alternative financing plans (L06-5] Lear Inc. has 5880.000 in current assets, $390,000 of which are considered
Problem 6-15 Alternative financing plans (L06-5] Lear Inc. has 5880.000 in current assets, $390,000 of which are considered permanent current assets. In addition, the firm has $680,000 invested in fixed assets Lear wishes to finance all foxed 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 $280.000 Determine Lear's earnings after taxes under this financing plan. The tax rates 30 percent Emming arts S 107 310 b. As an alternative Learnightwish to finance all fixed assets and permanent current assets plus ha fofits temporary current assets with long term financing and the balance with short-term financing the same interest rates apply as parts Esmings before interest and the will be $280.000. What will be Lear's earnings after taxes? The tax rate is 30 percent Earnings at 15150
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