1) Calculating Fees on a Loan Commitment You have approached your local bank for a start-up loan commitment for $1,300,000 needed to open an auto repair store. You have requested that the term of the loan be one-year. Your bank has offered you the following terms: size of loan commitment = $1,300,000, term = 1 year, up-front fee = 15 basis points, back-end fee = 30 basis points. If you take down 90 percent of the total loan commitment, calculate the total fees you have paid on this loan commitment.

2) Currency Exchange Compute the number of dollars that can be bought with 2.07 million of foreign currency units (round your answer to 2 decimal places): $1 = 16,025 Vietnam Dong

3) Calculation of Average Costs with Economies of Scope Jan's Bakery is considering a merger with Tina's Cookies. Jan's total operating costs of producing services are $450,000 for a sales volume of $3.5 million. Tina's total operating costs of producing services are $90,000 for a sales volume of $750,000. If the two firms merge, calculate the total average cost for the merged firm assuming no synergies. (Round your answer to 2 decimal places.)

4) Calculation of Bankruptcy Probability Suppose a linear probability model you have developed finds there are two factors influencing the past bankruptcy behavior of firms: the debt ratio and the profit margin. Based on past bankruptcy experience, the linear probability model is estimated as: PDi = .2 (debt ratio) + .15 (profit margin) a firm you are thinking of lending to has a debt ratio of 56.1 percent and a profit margin of 12.75 percent. Calculate the firm's expected probability of default, or bankruptcy.