1. Market risk, non-diversifiable risk, beta risk—these terms all mean the same thing. Give me some examples of this kind of risk. And why do we pay so much attention to this kind of risk, rather than simply talking about risk in general?
2. Company K expects to pay a dividend of $600 and an interest payment of $350 every year forever. The expected return on equity is 12%, and the YTM on its debt is 5%. K has $500 in excess cash. What is its enterprise value? Do not include dollar signs ($) or commas (,) in your answer.