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1. Company A is an originator of loans. At the beginning of year 1, the Company has $100mm in cash (opening balance sheet). 2. The

1. Company A is an originator of loans. At the beginning of year 1, the Company has $100mm in cash (opening balance sheet). 2. The Company will originate $50mm worth loans right away (to be clear these loans are not on the opening balance sheet). The loans have a gross interest rate of 12%. Assume ALLL is 10% of loan balance, servicing cost of 1% of loan balance, G&A 0.5% of loan balance. Assume the Company has financed the loans with 70% debt and 30% equity. The cost of debt financing is 3%. The only third party financing the Company sought was debt. Assume there were no actual losses. 3. Please put together an opening balance sheet, a balance sheet for the end of year 1, and the income statement for year 1 5. excel model for delivery

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