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Suppose a firm's tax rate is 35% a. What effect would a $10.41 million operating expense have on this year's earnings? What effect would it
Suppose a firm's tax rate is 35% a. What effect would a $10.41 million operating expense have on this year's earnings? What effect would it have on next year's earnings? b. What effect would a $9.45 million capital expense have on this year's earnings if the capital is depreciated at a rate of $1.89 million per year for five years? What effect would it have on next years earnings? a. What effect would a $10.41 million operating expense have on this year's earnings? Earnings would increase (decline) by Smillion (Round to two decimal places, and use a negative number for a decline.) What effect would it have on next year's eamings? (Select the best choice below.) O A. Next years earnings will be affected by the same amount O B. There would be no effect on next year's earnings. O C. Next year's earnings will be affected by an increase of $3.64 million O D. Next year's earnings will be affected by a decline of $3.64 million b. What effect would a $9.45 million capital expense have on this year's earnings if the capital is depreciated at a rate of $1.89 million per year for five years? What effect would it have on next year's earnings? Earnings would be higher (lower) each year by Smillion. (Round to two decimal places, and use a negative number for a decline.)
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