Question
Assuming the following data, determine the following: You can purchase an office building for $15,000,000. The bank has quoted a 60% LTV, and a
Assuming the following data, determine the following: You can purchase an office building for $15,000,000. The bank has quoted a 60% LTV, and a 1.30 DCR (Debt Coverage Ratio). The loan would be amortized for 30 years, the annual interest rate is 4.5%. The annual NOI is $850,000. a) Determine the maximum amount of the loan based on the LTV b) Determine the monthly payment of the loan using the PMT function in excel c) Determine the DCR-Debt Coverage Ratio d) How large of a loan could you obtain using the Debt Coverage Ratio and LTV as the two factors to consider.
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Understanding Financial Accounting
Authors: Christopher Burnley, Robert Hoskin, Maureen Fizzell, Donald
1st Canadian Edition
1118849388, 9781119048572, 978-1118849385
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