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If a firm dramatically increases its R&D expense in 2020, what would be the impact on the following performance measures: Operating Margin, FCF and EVA
If a firm dramatically increases its R&D expense in 2020, what would be the impact on the following performance measures: Operating Margin, FCF and EVA in 2020? What does the impact on these performance measures suggest about the performance of the firm in 2020 (good or bad)? What is the weakness with the conclusion drawn from this analysis? Is there a better performance measure to apply? Explain!
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