19) Suppose a firm pays total dividends of $320,000 out of net income of $2.7 million. What...
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19) Suppose a firm pays total dividends of $320,000 out of net income of $2.7 million. What would the firm's payout ratio be?
20) Calculating Fees on a Loan Commitment You have approached your local bank for a start-up loan commitment for $1,500,000 needed to open an auto repair store. You have requested that the term of the loan be one-year. Your bank has offered you the following terms: size of loan commitment = $1,500,000, term = 1 year, up-front fee = 25 basis points, back-end fee = 40 basis points. If you take down 95 percent of the total loan commitment, calculate the total fees you have paid on this loan commitment.
Related Book For
Finance Applications and Theory
ISBN: 978-0077861681
3rd edition
Authors: Marcia Cornett, Troy Adair
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