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Formulas LTV - (Mortgage balance / Acquisition price) DCR - (Net operating income / Debt service) Maximum debt service - NOI/Minimum DCR Given the following

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Formulas LTV - (Mortgage balance / Acquisition price) DCR - (Net operating income / Debt service) Maximum debt service - NOI/Minimum DCR Given the following information, calculate the debt coverage ratio of this commercial loan: Estimated net operating income in $200,000 first year: Debt service in first year: Loan amount: Purchase price $140,000 $1,000,000 $1,300.000 0.625 1.43 1.50 1.60

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