Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
4th Edition
ISBN: 9780134083278
Author: Jonathan Berk, Peter DeMarzo
Publisher: PEARSON
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Chapter 27, Problem 8P
Summary Introduction

To discuss: The difference between the evergreen credit and a revolving line of credit.

Introduction:

Line of credit is another type of bank loan credit. The bank will offer a loan on the line of credit, according to its nature, in a maximum limit.

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What is a revolving credit agreement?
What is the difference between a line of credit and a short-term loan?
What is a credit limit? How does it impact credit utilization (debit-credit ratio) and why is that important?
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Understanding Credit; Author: UCBStudentAffairs;https://www.youtube.com/watch?v=EBdXREhOuME;License: Standard Youtube License