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Category > Business & Finance Posted 07 Aug 2017 My Price 8.00

mckinsee inc

mckinsee inc is developing a plan to finance its asset base.the firm has 5,000,000 in current assets, of which 20% are permanent, and 12,000,000 in fixed assets. Long term rates are currently 9.5%, while short term rates are 7%. Mckinsees tax rate is 30%. 
A.) construct a conservative financing plan with 80% of assets financed by long term sources. If Mckinsees earning before taxes are 6,000,000, what will their net income be? 
B.) an alternative and more agressive plan would be to finance 60% of total assets with long term financing. Assuming that EBIT was again 6,000,000, what will net income be under this alternative?

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Status NEW Posted 07 Aug 2017 10:08 AM My Price 8.00

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