Which of These Is the Fee Charged by a Bank

question 69

Multiple Choice

Which of these is the fee charged by a bank for making funds available through a loan commitment?

• A) Back-end (or commitment) fee
• B) Simple interest expense
• C) Discounted interest
• D) Up-front (or facility) fees

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Definitions:

Noncumulative

Pertains to dividends that, if missed by a company, are not required to be paid out to shareholders in the future.

Diluted Earnings Per Share

A calculation of earnings per share that includes potential shares from convertible securities, providing a "worst-case" scenario of earnings per share.

Basic Earnings

The amount of profit attributable to shareholders before deductions for preferred dividends, calculated on a per-share basis.

Continuing Operations

The portions of a business’s activities expected to continue for the foreseeable future, as opposed to activities that are being discontinued or phased out.