Question: Calculating Fees on a Loan Commitment You have approached your local bank for a start-up loan commitment for $2,700,000 needed to open an auto repair

Calculating Fees on a Loan Commitment You have approached your local bank for a start-up loan commitment for $2,700,000 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 = $2,700,000, 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.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

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...

Calculating Fees on a Loan Commitment You have approached your local bank for a start-up loan commitment for $250,000 needed to open a computer repair store. You have requested that the term of the...

Your company doesn't face any taxes and has $254 million in assets, currently financed entirely with equity. Equity is worth $8.4 per share, an book value of equity is equal to market value of...

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? A) .32 B) 1.19 C) .119 D) 8.438 20) Calculating Fees on a Loan Commitment...

1) Calculating Fees on a Loan Commitment You have approached your local bank for a start-up loan commitment for $1,300,000 needed to open an auto repair store. You have requested that the term of the...

25. Assume a firm has a cash cycle of 77 days and an operating cycle of 135 days. What is its payables turnover? (Use 365 days a year. Round your answer to 2 decimal places.) Payable's turnover will...

24. Assume a firm has a cash cycle of 40 days and an operating cycle of 67 days. What is its average payment period? 25. Assume a firm has a cash cycle of 77 days and an operating cycle of 135 days....

17) Suppose that a company's equity is currently selling for $25.25 per share and that there are 5.30 million shares outstanding. If the firm also has 43 thousand bonds outstanding, which are selling...

18) Your company has a 34% tax rate and has $518 million in assets, currently financed entirely with equity. Equity is worth $41.80 per share, and book value of equity is equal to market value of...

Why do you think that the United States does not rank near the top of all the countries in the world when it comes to the country's performance in terms of Health Care Services?

Find the value of permutation. 7P7

Consider this statement: "Government involvement in markets is inherently inefficient." Do you agree or disagree? Explain.

2 points Most viewers of the sitcom, Blonde Dream, also watch Euphony, a music - based reality show, which is broadcast immediately after Blonde Dream. An ad for Savor chocolates placed during both...

1. Is an office romance likely to affect the productivity of the two workers involved? Is it likely to affect the people who work with them?

3. Danny Meyer encourages his employees to err on the side of generosity. How can members of the wait staff display generosity when serving customers?

2. Should organizations establish policies that prevent dating a coworker? A supervisor? Explain your answer.