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Calculate the Total Fees a Firm Would Have to Pay

question 29

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Calculate the total fees a firm would have to pay when its bank offers the firm the following loan commitment: A loan commitment of $1,500,000 with an up-front fee of 95 basis points and a back-end fee of 25 basis points. The take-down on the loan is 50 percent.


Definitions:

State Unemployment

Government programs funded by payroll taxes on employers, providing financial assistance to workers who have lost their jobs.

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