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When we adjust operating income (EBIT) after re-categorizing R&D as a capital expenditure instead of as an operating expense, we add on an ignored tax
When we adjust operating income (EBIT) after re-categorizing R&D as a capital expenditure instead of as an operating expense, we add on an ignored tax benefit to get our after-tax operating income EBIT(1-T). However, when we adjust EBIT after re-categorizing operating leases as a financing expense or debt, we do not add on an ignored tax benefit to our after-tax operating income EBIT(1-T). Why is that?
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