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Suppose a firm's tax rate is 25%. a. What effect would a $10.03 million operating expense have on this year's earnings? What effect would it
Suppose a firm's tax rate is 25%. a. What effect would a $10.03 million operating expense have on this year's earnings? What effect would it have on next yearning years? What effect would it have on next year's earnings? a. What effect would a $10.03 million operating expense have on this year's earnings? Earnings would increase (decline) by $ million. (Round to two decimal places, and use a negative number for a decline.) What effect would it have on next year's earnings? (Select the best choice below.) A. Next year's earnings will be affected by a decline of $2.51 million. B. Next year's earnings will be affected by an increase of $2.51 million. C. There would be no effect on next year's earnings. D. Next year's earnings will be affected by the same amount. b. What effect would a $12.05 million capital expense have on this year's earnings if the capital is depreciated at a rate of $2.41 million per year for years? What effect would it have on next year's earnings? Earnings would be higher (lower) each year by $ million. (Round to two decimal places, and use a negative number for a decline.)
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