Suppose a firm's tax rate is 30%. a. What effect would a $9.98 million operating oxpense have on this ynor's eamings? What eflect would th have an nent year's eamings? on next year's earnings? 30%59.99 milion =53 mallion. 8. A 59.99 million operating expense would be inmediately expensed, increasing oconating expenses by 39.99 malion. This would lead so an increase in tann of 30%$9.99 milion =$3 mition. c. Farnings would decline by $9.99 millon- $3 milton = $6.98 million. There would be no effect on noxt yeare eamings. D. Eamings would decline by $9.99 million 53 milion =$5.99 million. The same efoct wowd be seen an next years earnings