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Would love to know how to do this without the need for an excel file- Thanks! Raid Gauloises. Raid Gauloises is a rapidly growing French
Would love to know how to do this without the need for an excel file- Thanks!
Raid Gauloises. Raid Gauloises is a rapidly growing French sporting goods and adventure racing outfitter. The company has decided to borrow 22,000,000 via a cura-Buro floating rate loan for four years, Raid must decide between two competing loan offers from two of its banks. Banque de Paris has offered the four-year debt al euro-LIBOR + 2% with an up-front initiation fee of 1.800%. Banque de Sorbonne, however, has offered euro-LIBOR + 2.5% a higher spread, but with no loan initiation fees up-front, for the same term and principal. Both banks reset the interest rate at the end of each year. Euro-LIBOR is currently 3.800%. Raid's economist forecasts that LIBOR will rise by 0.500 percentage points each year. Bancue de Sorbonne, however, officially forecasts euro-LIBOR to begin trending upward at the rate of 0.250 percentage points per year. Raid Gauloises's cost of capital is 11%. Which loan proposal do you recommend for Raid Gauloises? For the Banque de Paris loan, the cash flow for Year Dis (Round to the nearest eum.) For the Banque de Paris lazan, the cash flow for Year 1 is (Round to the nearest eur.) For the Banque de Paris laan, the cash flow for Year 2 is - Round to the nearest eur.) For the Banque de Paris loan, the cash flow for Year 3 is (Round to the nearest eum.) For the Banque de Paris loan, the cash flow for Year 4 is (Round to the nearest euro.) For the Banque de Paris Ioan, the all-in-cast of funds if LIBOR rises by 0.500 percentage points each year is %. (Round to four decimal places) For the Banque de Sorbonne kan, the cash flow for Year Ois (Round to the nearest euc. For the Banque de Sorbonne kan, the cash flow for Year 1 is (Round to the nearest euro) For the Banque de Sorbonne loan, the cash flow for Year 2 is (Round to the nearest euro.) For the Banque de Sorbonne kian, the cash flow far Year 3 is (Round to the nearest curc.) For the Banque de Sorbonne kan, the cash flow for Year 4 is (Round to the nearest euro) For the Banque de Sorbonne ban, the al-in-cost of funds if LIBOR rises by 0.250 percentage points sach year is % (Round to four decimal places.) The Banque de is recommended because it has the all-in-oost. (Select from the drop-down menus.) Enter your answer in each of the answer boxes. Raid Gauloises. Raid Gauloises is a rapidly growing French sporting goods and adventure racing outfitter. The company has decided to borrow 22,000,000 via a cura-Buro floating rate loan for four years, Raid must decide between two competing loan offers from two of its banks. Banque de Paris has offered the four-year debt al euro-LIBOR + 2% with an up-front initiation fee of 1.800%. Banque de Sorbonne, however, has offered euro-LIBOR + 2.5% a higher spread, but with no loan initiation fees up-front, for the same term and principal. Both banks reset the interest rate at the end of each year. Euro-LIBOR is currently 3.800%. Raid's economist forecasts that LIBOR will rise by 0.500 percentage points each year. Bancue de Sorbonne, however, officially forecasts euro-LIBOR to begin trending upward at the rate of 0.250 percentage points per year. Raid Gauloises's cost of capital is 11%. Which loan proposal do you recommend for Raid Gauloises? For the Banque de Paris loan, the cash flow for Year Dis (Round to the nearest eum.) For the Banque de Paris lazan, the cash flow for Year 1 is (Round to the nearest eur.) For the Banque de Paris laan, the cash flow for Year 2 is - Round to the nearest eur.) For the Banque de Paris loan, the cash flow for Year 3 is (Round to the nearest eum.) For the Banque de Paris loan, the cash flow for Year 4 is (Round to the nearest euro.) For the Banque de Paris Ioan, the all-in-cast of funds if LIBOR rises by 0.500 percentage points each year is %. (Round to four decimal places) For the Banque de Sorbonne kan, the cash flow for Year Ois (Round to the nearest euc. For the Banque de Sorbonne kan, the cash flow for Year 1 is (Round to the nearest euro) For the Banque de Sorbonne loan, the cash flow for Year 2 is (Round to the nearest euro.) For the Banque de Sorbonne kian, the cash flow far Year 3 is (Round to the nearest curc.) For the Banque de Sorbonne kan, the cash flow for Year 4 is (Round to the nearest euro) For the Banque de Sorbonne ban, the al-in-cost of funds if LIBOR rises by 0.250 percentage points sach year is % (Round to four decimal places.) The Banque de is recommended because it has the all-in-oost. (Select from the drop-down menus.) Enter your answer in each of the answer boxesStep by Step Solution
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