A REIC requires a DCR of 1.5 for all property assets and has access to an interest-only line of credit that costs 8% p.a. If a potential property investment has an NOI of $150,000 and costs $2 mil, what is the permissible leverage ratio of the REIC for this property?

Select one:

a.

x5.67

b.

x0.67

c.

x4.67

d.

x2.67

e.

x1.67