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Suppose a firms tax rate is 35% a) what effect would a $10 million dollar operating expense have onthis year's earnings? What effect would it
Suppose a firms tax rate is 35% a) what effect would a $10 million dollar operating expense have onthis year's earnings? What effect would it have on next year'searnings? b) What effect would a $10 million capital expense have on thisyear's earnings, if the capital is depreciated at a rate of $2million dollars per year for 5 years? What effect would it have onnext year's earnings? (How do I go about answering? And what is the answer) Thank you much appreciated.
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