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Question
Smith Corporation has earned a return on capital invested of 10% for the past two years, but an investment analyst reviewing the company has stated the company is not creating shareholder value. This may be due to the fact thatA) the risk-free rate of interest is 3%.
B) the corporation's inventory turnover is high.
C) investors' required rate of return is 8%.
D) investors' required rate of return is 12%.
Answer
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Related questions
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