Calculating Fees on a Loan Commitment Calculate the Total Fees

question 30

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 percent.

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

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