5) Calculate the effective annual cost of the following bank credit facility and compare it to the stated rate: a. $12,000,000 line of credit b. 5.8% on amount borrowed c. $9,500,000 average cash shortfall d. 25 bps Origination Fee on commitment amount (25%) e. 35 bps Non-Usage Fee on unused portion (.35%) 6) Re-do the work (use problem 5), assuming the bank includes a 10% compensating balance requirement. What is the effective cost now? Now further assume that the firm needs access to the full $9.5 million (which means it will have to borrow more in order to be able to use 9.5 million). Calculate the effective cost and compare this result to the stated rate. 5) Calculate the effective annual cost of the following bank credit facility and compare it to the stated rate: a. $12,000,000 line of credit b. 5.8% on amount borrowed c. $9,500,000 average cash shortfall d. 25 bps Origination Fee on commitment amount (25%) e. 35 bps Non-Usage Fee on unused portion (.35%) 6) Re-do the work (use problem 5), assuming the bank includes a 10% compensating balance requirement. What is the effective cost now? Now further assume that the firm needs access to the full $9.5 million (which means it will have to borrow more in order to be able to use 9.5 million). Calculate the effective cost and compare this result to the stated rate