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Established chain of supermarkets

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Question 1: You are in charge of corporate lending for a bank. You have a choice to make a loan either to an established chain of supermarkets or a biotech company with a promising drug currently in trial phase. Which would you prefer to lend to? Why?

Question 2: If you were considering investing in the equity of one of the companies in 7(a), would your answer be different, and what factors would you consider when deciding (what are the positives and negatives of investing in each?).

Reference no: EM132418906

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