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Debt Service Coverage Ratio (DSCR) Calculation : Calculate the debt service coverage ratio for a company with net operating income of $100,000 and total debt

  1. Debt Service Coverage Ratio (DSCR) Calculation: Calculate the debt service coverage ratio for a company with net operating income of $100,000 and total debt service (principal and interest) of $50,000. What does this ratio indicate about the company’s ability to service its debt?

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