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Requirement 7. Describe some of the factors that management considers when setting its minimum target rate of return. After-t
choose six of the eight factors
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Answer #1

Target rate of return is the desired rate of return of the company

The relevant factors are:

Competitors rate of return

General Economic Conditions

Interest rate on debt

Investors Expectations

Minimum rate of return desired by investors

Risk level of business

Return of other divisions

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