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 _________
a) The risk free rate of interest is 3%
b) The corporation's inventory turnover is high
c) Investor's required rate of return is 8 %
d) Investor's required rate of return is 12 %.