Colter Steel has $4,800,000 in assets.
|Temporary current assets||$||1,600,000|
|Permanent current assets||1,530,000|
Assume the term structure of interest rates becomes inverted, with short-term rates going to 12 percent and long-term rates 2 percentage points lower than short-term rates. Earnings before interest and taxes are $1,020,000. The tax rate is 40 percent.