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Suppose you are a recent college graduate at a company and you are analyzing its return on invested capital of its new business ventures/products is
Suppose you are a recent college graduate at a company and you are analyzing its return on invested capital of its new business ventures/products is less than its WACC. What happens to the value of operations if the sales growth rate for these new ventures increases? Explain your answer and what would you recommend management do as a result to maximize shareholder value?
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