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both questions please for DYR AND DCR Calculate the Debt yield ratio (DYR): 12.75% 13.87% 10.74% 12.95% Question 20 (5 points) Saved Calculate the Debt
both questions please for DYR AND DCR
Calculate the Debt yield ratio (DYR): 12.75% 13.87% 10.74% 12.95% Question 20 (5 points) Saved Calculate the Debt Coverage Ratio (DCR): O 1.67 1.96 1.58 1.63 You are considering purchasing a small office building for $1,850,000 Your expectations include: First-year gross potential income of $340,000; Vacancy & collection losses equal to 10% of PGI; Operating expenses - 40% of EGI; Capital expenditures = 5% of EGI $1,300,000 mortgage @ 6% Mortgage will be amortized over 25 years Total up-front financing costs = 3% of the loan amount Step by Step Solution
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