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Smith Corporation has earned a return on capital of 10% for the past two years, but an investment analyst reviewing the company had stated the

Smith Corporation has earned a return on capital of 10% for the past two years, but an investment analyst reviewing the company had stated the company is not creating shareholder value. This may be due to the fact that _________ (Points : 1) The risk free rate of interest is 3% The corporation's inventory turnover is high Investors required rate of return is 8 % Investors required rate of return is 12 %

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