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Suppose a firm's tax rate is 35%. a. What effect would a $10.35 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
$10.35
million operating expense have on this year's earnings? What effect would it have on next year's earnings?
b. What effect would
a
$10.20
million capital expense have on this year's earnings if the capital is depreciated at a rate of
$2.04
million per year for five years? What effect would it have on next year's earnings?
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