What is the expected annual return to the lender

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Reference no: EM132793812

Craig's Crab Shack is receiving a mezzanine loan with the following terms: $5MM principal, 11% cash interest rate, 2% PIK, 5 year loan term, warrants worth $2.1 million, 0.5% commitment fee, and a 1% closing fee.

Problem 1: What is the expected annual return to the lender?

Reference no: EM132793812

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