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A company wants to borrow $200,000. The monthly payment obligation is $1,500. They have $1,900 available to service the debt. The collateral is worth $225,000.

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A company wants to borrow $200,000. The monthly payment obligation is $1,500. They have $1,900 available to service the debt. The collateral is worth $225,000. Will the bank make the loan? Yes, because the loan to value ratio is 0.8 yes, because the debt service coverage ratio is >1.20 No, because the debt service coverage ratio is

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