Textbook Brokers has a committed credit line in the amount of $2,000,000. The interest rate on the credit line is 4%, the commitment fee is 0.125%, and the compensating balance is 10%. The treasurer of Textbook Brokers believes that the firm will require average daily borrowings of $1,200,000. a. To spend $1,200,000 from the line, how much must be drawn from the line? b. Suppose that Textbook Brokers borrows the amount calculated in part a. What will the annual interest expense and commitment fee be based on? c. Calculate the effective cost of the line. 6. Ralph, treasurer for Petrova Imports, recently updated his firm's short-term cash forecast only to discover that the firm will suffer a cash shortage of $15 million for a period of 30 days. Ralph in demand and that discount rates are roughly 3.7%. The dealer's annual fee is 0.10% and the just learned from one of his dealers that commercial paper in the 30-day maturity range is annual commitment fee on a backup line of credit is 0.25%. Calculate the effective cost of the commercial paper