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Suppose a firm's tax rate is 25% a) a. What effect would a 10.14 million operating expense have on this year's earnings? What effect would
Suppose a firm's tax rate is 25% a) a. What effect would a 10.14 million operating expense have on this year's earnings? What effect would it have on next year's earnings? b) b. What effect would a 10.65 million capital expense have on this year's earnings if the capital expenditure is depreciated at a rate of 2.13 million per year for five years? What effect would it have on next year's earnings
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