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A firm is considering the followmg bank loan based on the following assumptions $15.000.000 line of credit stated rate amount borrowed Average outstandings estimated at

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A firm is considering the followmg bank loan based on the following assumptions $15.000.000 line of credit stated rate amount borrowed Average outstandings estimated at $10,000,000 (this includes the firm's budgeted cash shortfall and any required compensating balances) - 10compensating balance requirement on funds borrowed 50 bps (SOS) usage fee Funds Borrowed the denocinator) are Der Cewe Borowd 10.000 59.000.000 $13,500.00 $15.000.000

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