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there no specifics.Just do what you can but make sure its correct there is no more information to provide. just answer it please its been

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there no specifics.Just do what you can but make sure its correct
there is no more information to provide. just answer it please its been 2 days
A company wants to borrow six million dollars for one year. Various aspects of the loan is as under: 1. Equity to loan ratio is 8% 2. Reserve requirement is 125 3. The average cost of deposit is 6% and the average cost of equity is 22%. 4.insurance cost is 25 bps. Required: Calculate the cost of funding as explained in the class with all necessary steps. Give the cost as a percentage of the loan amount. Derive the interest rate by adding four percentage point to the cost of funding. Bank's spread and the separate balance sheet for this loan. A company wants to borrow six million dollars for one year. Various aspects of the loan is as under: 1. Equity to loan ratio is 8% 2. Reserve requirement is 125 3. The average cost of deposit is 6% and the average cost of equity is 22%. 4.insurance cost is 25 bps. Required: Calculate the cost of funding as explained in the class with all necessary steps. Give the cost as a percentage of the loan amount. Derive the interest rate by adding four percentage point to the cost of funding. Bank's spread and the separate balance sheet for this loan

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