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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
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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To determine how the slowdown in growth of working capital needs will impact the firm value of Cliff ...
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Fundamentals of Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
11th edition
77861701, 978-0077861704
