Determine lear earnings after taxes under financing plan

Reference no: EM13159069

The Lear Co. has current assets of $750,000, Permanent current Assets of $400,000, fixed Assets of$500,000, a tax rate of 35%, and a long term financing rate of 9%. Lear Co. wishes to finance all fixed assets and half of its permanent current assets with long-term financing. Lear's earnings before interest and taxes are $250,000. Determine Lear's earnings after taxes under this financing plan.

Reference no: EM13159069

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