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Suppose a? firm's tax rate is 35%. a. What effect would a $9.85 million operating expense...

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Finance

Suppose a? firm's tax rate is 35%.

a. What effect would a $9.85 million operating expense have onthis? year's earnings? What effect would it have on next? year'searnings?

b. What effect would a $9.25 million capital expense have onthis? year's earnings if the capital is depreciated at a rate of$1.85 million per year for five? years? What effect would it haveon next? year's earnings?

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Suppose a? firm's tax rate is 35%.a. What effect would a $9.85 million operating expense have onthis? year's earnings? What effect would it have on next? year'searnings?b. What effect would a $9.25 million capital expense have onthis? year's earnings if the capital is depreciated at a rate of$1.85 million per year for five? years? What effect would it haveon next? year's earnings?

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