User:Danicroi

Companies must invest in their own business to grow over time. DCF models often underestimate the necessary investment to achieve a growth. Geoffrey VanderPal investigated the impact of R&D on 103 companies from different fields through 1980-2013. He concluded that an intense positive correlation exists between R&D spending, profitability, and market value. It is important that analysts account for these findings in their models. Failure to link revenue growth and R&D spending will result in unrealistic growth projections that will propagate throughout the calculations.Potential Articles to Tackle (2/1/2017) Assignment:

- Weighted Average Cost of Capital (Weighted average cost of capital)

- Cash Conversion Cycle (Cash conversion cycle)

- Latin American Capital Markets