Selected income statement information is presented below for Proctor \& Gamble and Abercrombie \& Fitch.

a. Compute the tax shield for each company: Net nonoperating expense (revenue) \(\times\) Statutory rate.
\(b\). Use the following equation to compute the tax rate on net operating profit for each company.

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Net Operating Profit Company ($ millions) Ticker Before Tax Procter & Gamble...... PG $17,083 Abercrombie & Fitch..... ANF 740 Pretax Net Tax Statutory Expense (Revenue) Expense Tax Rate Nonoperating $1,005 (19) $4,003 37.5% $284 38.1%