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Apex Industries Expects to Earn $25 Million in Operating Profit

Question 10

Multiple Choice

Apex Industries expects to earn $25 million in operating profit next year.The company pays an operating tax rate of 30 percent.If the value of leased asset is $125 and the cost of debt is 10 percent,what is the approximate after-tax operating profit,adjusted for capitalized operating leases?


A) $24
B) $25
C) $26
D) $27

Correct Answer:

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