12. Multinational Co. (MNC) generated $1,000 million in domestic earnings before interest, taxes, and amortization (EBITA). MNC amortizes intangible assets at $200 million per year and takes a $300 million interest expense. MNC's statutory (domestic) tax rate is 34 percent on earnings before taxes, but only 24 percent on foreign operations. MNC had $100 million of pretax foreign income and generates $20 million in ongoing research and development (R&D) tax credits. What is its effective tax rate on pretax profits? a) 26.7 percent. b) 29.0 percent. c) 31.5 percent. d) 33.3 percent