Our company uses a growing perpetuity model to analyze its corporate value.

The value is currently modeled based on:

Annual revenues $28m

Annual costs are $20m

Net inflow in the first year $8m

Cost of capital 12%

Growth rate 2%

If annual revenues were to decrease, with no other changes, then the corporate value would normally be expected to:

a) Stay the same.

b) Increase.

c) There's not enough information to answer.

d) Decrease.