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Suppose a firm's tax rate is 20%. 1. If operating expenses increase by 10 million, what is the effect on this year after-tax earnings? 2.

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Suppose a firm's tax rate is 20%. 1. If operating expenses increase by 10 million, what is the effect on this year after-tax earnings? 2. If there is a capital expense of 5 million, to be depreciated over 5 years, what is the effect on this year after-tax earning? On next year after-tax earnings

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