Suppose a firm is equally likely to earn $2 million this year or lose $3 million. The firm faces a tax rate of 40% on each dollar of taxable income, and the firm pays no taxes on losses. In this simple one-period scenario, ignore the carryback and carryforward rules. The firm%u2019s expected taxable income is thus a loss of $500,000 calculated as .50(-$3) + .50($2). What is the firm%u2019s expected marginal tax rate?