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5. Debt Coverage Ratio a. Sam is looking to purchase a commercial building that has an Unlevered Cash Flow of $405,000. If Sam's lender requires

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5. Debt Coverage Ratio a. Sam is looking to purchase a commercial building that has an Unlevered Cash Flow of $405,000. If Sam's lender requires a Debt Coverage Ratio of at least 1.2, what is the maximum annual Debt Service Sam can pay? b. Sam is able to get a 5.0% fixed rate loan fully amortizing over 30 years. Based on the maximum Debt Service, what is the maximum amount that Sam can borrow for the purchase of the property

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