Calculating Fees on a Loan Commitment Calculate the Total Fees

question 12

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 $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%.

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

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Definitions:

Physician

A medical professional who diagnoses and treats diseases, performs medical research, and advises on maintaining health.

Psychodynamic Theories

Theories that view personality with a focus on the unconscious and the importance of childhood experiences.

Psychoanalysis

A therapeutic approach developed by Freud, focusing on exploring unconscious motivations and conflicts as a method of treating psychological disorders.

Trait Theories

Theories in psychology that focus on identifying and classifying individual differences in behavior as stable traits.