Assume you own a small office property. The building consists of a 7,500 square foot office that rents for $15 per square foot per year. On average, the vacancy rate is 10 percent of PGI (potential gross income) and expenses are 42 percent of EGI (effective gross income). Determine the debt coverage ratio (DCR) if the loan has an annual debt service of $43,825. Assume no misc. income or capital expenditures.

A. 0.75

B. 1.15

C. 1.34

D. 1.26