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Suppose a firm's tax rate is 35 % Requirements: a. What effect would a $10.66 million operating expense have on this year's earnings? What effect
Suppose a firm's tax rate is 35 %
Requirements:
a. What effect would a $10.66 million operating expense have on this year's earnings? What effect would it have on next year's earnings?
b. What effect would a $10.05 million capital expense have on this year's earnings if the capital expenditure is depreciated at a rate of $2.01 million per year for five years? What effect would it have on next year's earnings?
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