Calculate the Total Fees a Firm Would Have to Pay

question 28

Multiple Choice

Calculate the total fees a firm would have to pay when its bank offers the firm the following loan commitment: A loan commitment of $7,500,000 with an up-front fee of 80 basis points and a back-end fee of 50 basis points. The take-down on the loan is 60 percent.

• A) $37,500
• B) $60,000
• C) $61,500
• D) $75,000

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