4) Calculate the effective annual cost of the following bank credit facility. Interest Expense + Commitment Fee Effective Cost = Usable Funds Borrowed 1. Calculate the effective annual cost of the following bank credit facility and compare it to the stated rate: $9,000,000 line of credit 7% on amount borrowed $6,500,000 average cash shortfall 20 bps Origination Fee on commitment amount 30 bps Non-Usage Fee on unused portion 2. Re-do the work assuming the bank includes a 10% compensating balance requirement. Further assume that the firm needs access to the full $6.5 million (which means it will have to borrow more in order to be able to use 56.5 million. Compare this result to the stated rate. 3. Re-do the work assuming the bank includes a 10% compensating balance requirement but the firm already maintains $300,000 in excess balances that would contribute to the compensating balance requirement