Informal line of credit with revolving credit agreement

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1. Compare and contrast an informal line of credit with a revolving credit agreement.

2. How do you calculate terminal growth rate and terminal weighted average cost of capital?

3. Explain the difference between systematic and unsystematic risk, and why one of these types of risks is rewarded with a risk premium while the other type is not. Give some examples for systematic and unsystematic risk.

Reference no: EM132057574

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