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Cliff Capital Corporation (CCC) has $100,000 in net working capital and a weighted-average cost of capital of 15%. CCC expects working capital needs to grow

  1. Cliff Capital Corporation (CCC) has $100,000 in net working capital and a weighted-average cost of capital of 15%. CCC expects working capital needs to grow at 10% per year indefinitely, but CCC believes they can slow this growth. If CCC can slow the growth rate of their working capital demands to 5%, how will this impact CCC firm value?

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