### Calculations of loan fees income

Assignment Help Finance Basics
##### Reference no: EM1367083

An FI makes a loan commitment of \$2,500,000 with an up-front fee of fifty basis points and a back-end fees of 25 basis points on the unused portion of loan. The takedown on the loan is 50 percent.

What are the total fees earned by the FI at the end of the year, that is, in future value terms? Assume the cost of capital for the FI is 6%

I don't understand how the cost of capital fits into this problem... is it relevant at all?

### Previous Q& A

#### Write program to compute student-s quiz average

Write a program that will compute student's quiz average. Program must prompt the user for the number of quizzes and then ask the user for each quiz grade.

#### Connection between demand for goods and market failures

What is significant about the connection between the demand for goods and market failures? What happens to the demand for goods when a market fails

#### Aggregate demand for goods and services

The Aggregate Demand for goods and services in an economy must at every moment equal the value of Real Gross Domestic Product because both are defined to be the sum of (C+I+G+X-IM).

#### Write class to represent temperatures in degree-fahrenheit

Write Temperature class to represent temperatures in degrees in Celsius, Fahrenheit and Kelvin. Use floating-point number for temperature and a character (type char) for scale.

#### Calculating the return on an investment

A 1949 Vincent Black Shadow Series V motorcycle sold for about \$45,000 in 1996. If you were fortunate enough to have bought one new for \$630 in 1949,

#### Data in the cancer registries

What is the main purpose behind developing and maintaining this massive collection of data in the cancer registries?

#### Leakage adjusted money multiplier

Assume the ratio of deposits that banks hold in the form of reserves is 7 percent. Assume further that people want to hold 8 percent of their deposits in the form of cash.

#### Economic choices-labor shortages

Mention two economic choices you had to make with in last week. Alfred Marshall said in 1890s, "economics is the study of man in ordinary business of life." You must examine one or two of these choices in terms of alternatives you gave up.

#### Differentiating debate from a discussion

Identify the features that differentiate a debate from a discussion. What is the method used to make the difference between what constitutes a debate and a discussion?

#### Interpret basic statistical data

Writing About Testing Worries Boosts - Exam Performance in the Classroom and wm is a short-tam memory system involved in the control and regulation of a limited amount of information immediately relevant to the task at hand.

### Similar Q& A

#### Compute degree of operating leverage and combined leverage

Compute Degree of operating leverage and combined leverage & financial leverage and interpreting these values.

#### Calculateyion of required rate of return

Suppose that you manage a \$10.00 million mutual fund that has a beta of 1.05 and a 12.00 percent required return. The risk-free rate is 4.75%. You now receive another \$10.00 million,

#### Computation of probability of payment

Computation of probability of payment and determine the probability of payment that would make Rockwell indifferent between granting credit and the present policy

#### Bond pricing factors and direction of response

Write down the three factors that cause a bond's price to change and what is the predicted direction of change for the bond's price from changes in these factors?

#### What is the estimated loan rate for the five-year bank loan

The yield on a five-year U.S. Treasury note is 1.95 percent, and the three-month U.S. Treasury bill rate is 0.11 percent. Evaluate what is the estimated loan rate for the five-year bank loan?

#### Determining the sources of financing

Recognize potential domestic and international sources of financing for your global venture project. Analyze the role of external governance and its impact to the organization. Explain the degree to which your organization will operate as a Centrali..

#### Determine departmental cost driver rates

Western Wood Product has 2 production sections: cutting and assembly. The company has been using a single predetermined cost driver rate based on plantwide direct labor hours.

#### True or false question based on corporate tax

Cardinal, LLC incurred \$20,000 of startup costs, \$3,000 of organizational costs, and paid \$10,000 in transfer taxes to change the title of a building contributed by one of LLC's members.

#### Brand and customer equity

What are brand equity and customer equity? What are the advantages and disadvantages of each?

#### Find percent of the population registered to vote

If during an election there were 6372 listed voters & 3560 listed voters voted, what percentage of the listed voters actually cast a vote.

#### Explain weighted average cost of capital that is appropriate

Explain Weighted average cost of capital that is appropriate to use in evaluation of expansion program

#### Computation of expected return

Suppose You are planning investing \$1,000 in a T-bill that pays 0.05 and a risky portfolio, P, constructed with 2 risky securities, X and Y. The weights of X and Y in P are 0.60 and 0.40, respectively.

#### Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!