1. Memphis Metro, a service-based firm that provides high-performance training for competitive junior volleyball players, bas a credit line with the following specifications: Average daily borrowings of $400,000 on a $500,000 committed credit line Annualinterest expense oo the credit line of $14.500, Commitment fee of $500 a. Calculate the effective borrowing cost for the credit line. b. Resalculate the effective cost of the credit line with a compensating balance requirement of 5 percent. 6. Recalculate the effective cost of the credit line with a compensating balance requirement of 10 percent d. Discuss why the effective borrowing cost increases for a b,ands. 1. Memphis Metro, a service-based firm that provides high-performance training for competitive junior volleyball players, bas a credit line with the following specifications: Average daily borrowings of $400,000 on a $500,000 committed credit line Annualinterest expense oo the credit line of $14.500, Commitment fee of $500 a. Calculate the effective borrowing cost for the credit line. b. Resalculate the effective cost of the credit line with a compensating balance requirement of 5 percent. 6. Recalculate the effective cost of the credit line with a compensating balance requirement of 10 percent d. Discuss why the effective borrowing cost increases for a b,ands