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Suppose a firm's tax rate is 30 %30%. a. What effect would a $ 10.07$10.07 million operating expense have on this year's earnings? What effect
Suppose a firm's tax rate is 30 %30%. a. What effect would a $ 10.07$10.07 million operating expense have on this year's earnings? What effect would it have on next year's earnings? b. What effect would a $ 10.2$10.2 million capital expense have on this year's earnings if the capital expenditure is depreciated at a rate of $ 2.04$2.04 million per year for five years? What effect would it have on next year's earnings?
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