Calculating Fees on a Loan Commitment Calculate the Total Fees

question 3

Multiple Choice

Calculating Fees on a Loan Commitment Calculate the total fees a firm would have to pay when its bank offers the firm the following loan commitment: A loan commitment of $5,000,000 with an up-front fee of 50 basis points and a back-end fee of 20 basis points. The take-down on the loan is 80%.

• A) $10,000
• B) $25,000
• C) $27,000
• D) $33,000

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