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Take the role of a loan committee of ABN-Amro, a large banking company headquartered inAmsterdam. Assume the company has requested a loan from ABN-Amro. Analyze
- Take the role of a loan committee of ABN-Amro, a large banking company headquartered inAmsterdam. Assume the company has requested a loan from ABN-Amro. Analyze the company's financial statements and any other information that you need to reach a decision regarding the maximum amount of money that you would be willing to lend. Go as deeply intothe analysis and the related decision as you can. Specify the following:
- The length of the loan period; that is, over what period will you allow the company to payyou back?
- The interest rate you will charge on the loan. Will you charge the prevailing interest rate, alower rate, or a higher rate? Why?
- Any restrictions you will impose on the borrower as a condition for giving the loan. Note:The long-term debt note to the financial statements gives details of the company's existingliabilities.
- Write your group decision in a report addressed to the bank's board of directors. Limit your report to 500 words
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