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(Solved): Suppose a firm's tax rate is 25 %25%. a. What effect would a $10.0010.00 million operating ...



Suppose a? firm's tax rate is 25 %25%. a. What effect would a ?$10.0010.00 million operating expense have on this? year's earnings? What effect would it have on next? year's earnings? b. What effect would aa ?$10.0010.00 million capital expense have on this? year's earnings if the capital is depreciated at a rate of $ 2.00$2.00 million per year for five? years? What effect would it have on next? year's earnings? Question content area bottom Part 1 a. What effect would a ?$10.0010.00 million operating expense have on this? year's earnings? Earnings would increase? (decline) by ?$enter your response here million. ?(Round to two decimal? places, and use a negative number for a? decline.) Part 2 What effect would it have on next? year's earnings? ? (Select the best choice? below.) A. There would be no effect on next? year's earnings. B. Next? year's earnings will be affected by a decline of ?$2.502.50 million. C. Next? year's earnings will be affected by an increase of ?$2.502.50 million. D. Next? year's earnings will be affected by the same amount. Part 3 b. What effect would aa ?$10.0010.00 million capital expense have on this? year's earnings if the capital is depreciated at a rate of $ 2.00$2.00 million per year for five? years? What effect would it have on next? year's earnings? Earnings would be higher? (lower) each year by ?$enter your response here million. ?(Round to two decimal? places, and use a negative number for a? decline.) Earnings would increase (decline) by $(Round to two decimal places, and use a negative number for a decline.))Earnings would be higher (lower) each year by $(Round to two decimal places, and use a negative number for a decline.)



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